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Operations Division

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PART A VOLUME 31

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MARCH 1942

A-15044

I

CONFIDENTIAL

OFFICE OF NAVAL INTELLIGENCE
Washington, D. C.

Foreword

1. The Office of Naval Intelligence has undertaken to translate
important parts of the War Diary of the German Naval Staff. The
present volume, entitled War Diary of the German Naval Staff, Op-
erations Division , Part A, Volume 31 is the fifth one of the
series to appear. Other volumes will follow shortly.

2. The War Diaries, Part A, are important because they contain a
day by day summary of the information available to the German Naval
Staff and the decisions reached on the basis thereof. Together with
the Fuehrer Conferences on Matters Dealing with the German Navy, 1939-
1945 * which have been published by this office, the Wnr Diaries should
provide valuable material for the study of naval problems arising from
total war. The War Diary, Part A, is also a useful index to the German
Naval Archives of World War II; references may be found In the micro-
film library of Naval Records and Library.

3. Due to the cost of publication, only a limited number of
copies could be made; It is therefore desirable that the copies
which have been distributed are made available to other offices
which may be Interested.

• X972, SUB J

Washington, D. C,
19^8

:

WAR DIARY OF THE GERMAN NAVAL STAFF
(Operations Division)

PART A
March 19^2

Chief, Naval Staff: Grand Admiral Raeder, Dr. h.c

Chief of Staff, Naval Staff: Vice Admiral Fricke

Chief, Operations Division, Naval Staff: Captain Wagner

Volume 31

begun: 1 March 19^2

closed: 31 March 19^2

c

CONFIDENTIAL

1 Mar. 19^2

Items of Political Importance

Eire ;

De Valera spoke on the serious food situation confronting the country,
which is due to the fact that shipping space is needed for other and
still more vital purposes, the most Important of which is the trans-
port of fuel. He said that he hopes it will be possible to manage
without resorting to soup kitchens.

U.S.A .:

The U.S. Government informed the De Gaullist Governor of New Caledonia
that the United States desires to cooperate with this country directly
without recourse to any other French authority.

From a declaration of the Argentine Foreign Minister it can be
gathered that the North American armament program is laid out on a
four years 1 schedule covering the following four phases:

1. Rearmament of North America.

2. Military aid to Russia, Britain, and China.

3. Shipment of arms to countries within the American Defense
Zone (as far as 18° S).

4. Shipment of arms to other countries.

Japan :

Close attention is being paid to the replacement of the Japanese Ambas-
sador to Moscow, Tatekawa, by Satoh. This move is spoken of as herald-
ing a change in Russo-Japanese relations.

Situation 1 Mar. 19*12

I. War In Foreign Waters

1. Enemy Situation :

No important items are available.

2. Own Situation :

The Naval Attache at Tokyo is advised that from the end of
March on the Naval Staff intends to have an auxiliary cruiser operat-
ing in the southern Indian Ocean south of 10° S and west of 95° E.

In view of the enemy situation the GERMANIA must depart from Santa
Cruz no later than 4 Mar.. The Naval Attache at Madrid receives a
corresponding directive.

All concerned in foreign waters are advised of the enemy situation by
Radiograms 0613 and 1826.

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1 Mar. 19^2 CONFIDENTIAL

II. Situation West Area

1. Enemy Situation t

A joint communique of the British Admiralty and the Air Min-
istry of 28 Feb. reports that an attack on the German radar equipment
at Bruneval was successful and that the station was destroyed. Another
announcement, which also includes the War Office, reveals that the par-
achute troops were supported by infantry.

According to radio monitoring British PT boats and motor gun boats
were put into action during the evening against detected German con-
voys. At 2157 the British vessels executed a torpedo attack.

2. Own Situation ;

. Atlantic Coast :

Group West advises the Naval Staff about the opinion of the ^
Commanding Admiral, Submarines concerning the disadvantages in limit- {
ing submarines to only two routes for their arrival and departure be-
cause of the lack of patrol vessels. Group West also reports that
they are investigating whether more forces of the Air Command, Atlan-
tic Coast can be incorporated into the daylight patrol system. (See
Telegram 0300. )

Radiogram 1506 advises the 0S0RN0 that long-range reconnaissance will
be discontinued beginning 1 Mar.

Channel Coast :

See Telegram 01^5 for a report from the Naval Shore Command,
Seine-Somme about the air raid on the Air Force building at Cap d'An-
tifer on 28 Feb.

On the basis of experiences gained from the British airborne landing
operation near Cap d'Antifer the Naval , Staff directs the Admiral,
France to investigate whether the headquarters of the Commanding Ad-
miral, Submarines and the other admirals as well as the - submarine pens
and living quarters for submarine crews are adequately defended against ^
similar British operations. Group West is informed of the measure. ^_

(See Telegram 1601.)

The Armed Forces High Command, Operations Staff issues the following
directive to the Commander in Chief, Army; Commander in Chief, Air;
Commander in Chief, Navy; Commanding General, Armed Forces, Norway;
Commanding General, Lapland; Commanding General Armed Forces, Nether-
lands; Commanding General Armed Forces, Southeast; Commanding Gener-
al, West; Commanding General, South; and the Commanding General,
Panzer Army, Africa:

"In a raid on the Channel coast during the night of 27 Feb. Brit-
ish paratroopers (77 men according to a statement from a prisoner)
captured or destroyed a radar instrument of the Air Force which was
set up in the immediate vicinity of the coast but was inadequately de-
fended. The paratroopers escaped aboard four PT boats.

Because of this incident all defense preparations, especially the pro-
tection of installations of this nature when located near the coast,

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1 Mar. 1942 CONFIDENTIAL

but also those in the interior, are to be checked once more immediately
with regard to their defensive strength against raids of all kinds and
are to be reinforced if necessary.

The branches of the Armed Forces will forward this directive at once
to their subordinate headquarters. Further orders will follow."

The directive has been forwarded to Groups West, North, and South,
with copies to the Commanding Admirals, France and Norway.

The 4th PT Boat Flotilla conducted a torpedo mission southeast of Or-
fordness. At 2155 enemy PT boats attacked the tanker MEMELLAND which
was hit but remained afloat. She is to be towed to Boulogne.

Between 2119 and 2159 the "Grosser Kurfuerst", "Prinz Heinrich", and
"Friedrich August" batteries fired a total of 7 rounds from the 30.5
cm. guns and 14 rounds from the 28 cm. guns at a detected enemy convoy.
Effects were not observed.

There seems to be little use in firing on detected ene-
my forces off the British coast in this manner. It
should be examined whether such an expenditure is worth
while at all.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation :

The Air Force located a considerable number of shipping tar-
gets northwest of Walcheren, but our fighters which were over the lo-
cation one hour later sighted nothing.

In the afternoon and evening reconnaissance activity over the central
part of the North Sea and along the Norwegian coast.

The 4th Mine Sweeper Flotilla is en route from Hook of Holland to "Wes-
ermuende. This flotilla is to be stationed in Norway.

Group North advises against maneuvers by heavy vessels in the North
Sea since mines have been reported in that area and ice conditions
make it impossible to sweep and patrol routes adequately.

During the night the 1st Mine Sweeper Flotilla and the 8th Motor Mine
Sweeper Flotilla laid mine fields SV 4 and SV 5.

2. Norway :

According to air reconnaissance the naval vessel and the
rather large steamers which were sighted in Murmansk and Kola Bay on
27 Feb. are no longer to be seen there. The convoy has presumably de-
parted .

Own Situation :

Due to a defect in the connection no reports are available
from the Admiral, Arctic Ocean.

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1 Mar. 1942 CONFIDENTIAL

On 23 Feb. enemy air raid on Kirkenes. The mess hall and the office
building of the Air Force loading officer vere damaged.

Transport and escort services according to plan; nothing to report.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea :

See Telegram 0200 for the report from the Air Force Commander, Central
Sector to the Naval Staff concerning transfer of the 1st Air Force
Smoke Detachment to Kiel. This unit vill temporarily be placed under
tactical naval command until the Navy ! s ovn smoke detachment is ready
for duty.

Ey Telegram 1600 the Naval Staff directs the Naval Station, Baltic to

report at once to the Naval Staff on the bomb hit sustained aboard

the MONTE SARMIENTC and to explain the reason why the crew had not been *

alerted. Group North is informed of the order. f

Otherwise nothing to report.

V. Submarine Warfare

1. Enemy Situation ;

According to radio monitoring a plane located about 370 miles
west of Brest reported at 1300 that it attacked a submarine with depth
bombs and presumably scored two hits. On receipt of the report two
more planes were dispatched from Plymouth and advised that the attacked
vessel was probably damaged. Towards midnight two other submarines
were reported in 4600 N, 0930 W and 4927 N, 1406 W.

Radio station Rugby broadcast a submarine warning for the area approxi-
mately 450 miles southeast of Halifax and the sea area within a 20 mile
radius off the southern tip of Florida.

On 27 Feb. a submarine warning was issued for the area northeast of
Cape Viego Francis (Haiti), where two submarines supposedly sank a
British ship.

2. Own Situation ;

Submarine U "135" sighted a southwest bound convoy in AL
6862.

In spite of foul weather which is a great handicap in the use of weap-
ons, U "135" fired a quadruple torpedo spread but missed the target
and subsequently continued on her voyage north.

Submarine U "213" sighted an enemy submarine in AM 1970.

For a complementary situation report see War Diary, Part B, Volume IV.

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1 Mar. 1942 CONFIDENTIAL

VI. Aerial Warfare

1. British Isles and Vicinity :

In the evening armed reconnaissance damaged a 5,000 GRT mer-
chantman.

2. Mediterranean Theater ;

During the afternoon submarine berths at Valetta were re-
peatedly attacked with bombs of heaviest caliber. Dense clouds caused
by the explosions prevented observation of the effect on individual
targets, but judging from the locations of hits scored the resulting
damage is probably considerable. Defensive fire from heavy anti-air-
craft artillery was very well aimed. Dock installations at Valetta
were attacked during the night of 1 Mar.. On 2 Mar. the resultant
damage will be observed by aerial photography.

3. Eastern Front :

It is reported that the enemy is protecting Sevastopol with
a strong fighter screen.

On the eastern front we have approximately three times as many planes
as the enemy (on 22 Feb. 1,021 as compared with 371).

VII. Warfare in the Mediterranean

1 . Enemy Situation :

The only reports concerned submarines which were located
northwest of Naples near Leukas and between Pola and Flume.

2. Situation Italy :

No enemy air raids on Benghazi during the night of 28 Feb.

On 27 Feb. an enemy submarine shelled three Italian coastal steamers
northeast of Leukas. The steamer LIDO caught fire as a result and ran
ashore during this attack.

3. Transport of Supplies to North Africa :

During the afternoon of 27 Feb. an enemy submarine sank the
steamer TEMBIEN west of Tripoli.

4. Area Naval Group South :
Aegean Sea :

Nothing to report.

Black Sea :

Air reconnaissance reports that seven steamers, three tor-
pedo boats, and three PT boats left Sevastopol. A medium-sized naval

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1 Mar. 19^2 CONFIDENTIAL

vessel was located off Sevastopol. According to radio monitoring the
cruisers "E" and "D" were located in the Tuapse area and three de-
stroyers were in the Sevastopol area. Eight submarines were detected
at sea south of the Crimea. Radio communications with patrol and
coastal defense vessels were normal.

Own Situation :

The High Command, 2nd Army has supplemented the air recon-
naissance reports concerning the vessels arriving in Sevastopol by
pointing out that a convoy of seven transports is involved. There-
fore it may he expected that the enemy forces in the Crimea will soon
he reinforced in toth materiel and personnel.

As concerns the use of Italian special weapons in the Black Sea, the
I.'aval Attache at Rome has advised Group South that the Italians intend
to organize these units in a manner which will require a minimum num-
ber of officers and men. The Naval Staff informs Group South that it
is very much in accord with this way of planning and that it also
fully approves of the various Italian proposals concerning organiza-
tion of command.

VIII. Situation East Asia

1. Enemy Situation ;

From the first phase of the engagement between Allied and
Japanese naval forces in connection with Japanese landings on Java on

Feb. the U.S. Navy Department reports that the Japanese cruiser
MOGAMI and three destroyers were put out of action, while the Allied
vessels sustained no serious damage .

The official report from the Dutch East Indies on the battle in the
Java Sea and the Japanese landing operation in Java speaks of a Japa-
nese transport fleet of forty steamers and a supporting naval force of
twenty vessels, among them heavy cruisers with 20 cm. guns. The Japa-
nese sustained the losses reported above on 27 Feb.. Two Dutch crui-
sers sustained torpedo hits and sank in the course of the ensuing
night action. During the landing operation in the night of 28 Feb. a
Dutch destroyer engaged two Japanese cruisers near Bantam and was
beached while sinking. Off Rembang Allied submarines and planes sank
a transport and damaged another one; off Indramayu a naval vessel was
blown up by four direct bomb hits and a steamer of 6,000 GRT burned up.
Bomb hits damaged a cruiser and six more transports.

The oil fields and refineries near Tjepoe were destroyed.

2. Situation Japan :

An official report from Tokyo states that three enemy crui-
sers and six destroyers were sunk during the night of 27 Feb. and that
two enemy cruisers were sunk during the night of 28 Feb.. Four more
cruisers were damaged. Only one Japanese destroyer sustained damages.

Japanese troops were successful in landing at four points in Java.

However obscure the picture of actual losses Incurred in
the course of the naval battles may be, it is certain

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1 Mar. 19^2 CONFIDENTIAL

that the Japanese succeeded in achieving their strategic
goal.

IX. Army Situation

1. Russian Front ;

Southern Army Group :

In the Crimea the enemy concentrated most of his pressure
against the northern sector of the eastern front, where he attacked
with two divisions supported by between forty and fifty tanks. Our
troops were able to hold Korpetch. Enemy attacks on the Sevastopol
front were unsuccessful.

On the sector defended by the Von Kleist Army Group all enemy attacks
failed.

On the southwest flank of the 6th Army we launched an attack and some
groups crossed the Orel in pursuit of the withdrawing enemy.

At the 2nd Army sector enemy attacks near Livny were repulsed.

Central Army Group :

The 2nd Panzer Army has launched a counterattack against the
enemy forces which penetrated our lines in the northern outskirts of
Vesniny. All enemy attacks on the 4th Army sector were unsuccessful.

Northern Army Group :

The battles around Kholm and Staraya Russa are continuing.

2. Finnish and Norwegian Front :

Brisk artillery activity on the Svir front. The enemy raid-
ing party which had broken through our lines was annihilated.

3. North Africa :

The presence of a South African division in the Ain el Gazala
position has been confirmed.

During February the enemy lost twenty six tanks and armored cars,
thirty six guns, 117 motor vehicles, and fifty nine planes.

******************** *******

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CONFIDENTIAL
2 Mar. 19^2

Items of Political Importance

France:

The United States are trying with all means at their command to obtain
a guarantee from Vichy that Madagascar will never become an Axis base
and that the island will be defended against any attack.

Great Britain :

Britain's efforts to humor Russia by encouraging Sir Stafford Cripps
are bearing the strangest fruit. At a meeting of an Anglo-Russian
youth organization he was rerinitted to express the hope that the Brit-
ish youth will be as brave and steadfast as that of Soviet Russia;
the attitude of the Russian youth guarantees that it will play an im-
portant part not.only in conquering Marxism (obviously an error and
should be Nazism, Tr.N.) but also in the construction of the new world
and the new civilization after victory is won.

In an editorial the London "Times" advocates a sweeping change in
3ritish foreign policy. It states that British supremacy in East Asia
can never be restored to its old form but that the defeat could be the
basis for a new trend in which Britain would once more become the pio-
neer and proponent of ideologies.

Spain :

A report issued by the official U.S. news agency alleging that German
submarines are being supplied at bases in the Canary Islands, pri-
marily designed to foment anti-Spanish sentiment in the South American
press, gave rise to a sharp denial from the Spanish Foreign Office.

Sweden:

The Danish press devotes special attention to intensified military
preparations in Sweden and also discusses the possible threat to the
northern Atlantic coast in case the British and Americans launch a
spring offensive. In the same connection the Associated Press mentions
a report by the Norwegian Legation in Montreal concerning the possi-
bility of an Allied invasion of the northern area.

Conference on the Situation with the Chief, Naval Staff .

I. The night fighter defense organization at Kiel was to be ready
for duty by the end of January. The Chief, Naval Staff orders an in-
vestigation of how far the matter has progressed.

II. On the basis of the brief report forwarded by Group West the Chief
of Operations Branch, Naval Staff reports about the enemy attack on the
Air Force equipment near Cap d'Antifer. He also reports on security
measures taken by the Naval Station, North Sea for the protection of
the Frisian Islands and the special attention devoted to the coast of
Holland. At this the Chief, Naval Staff, Quartermaster Division re-

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2 Mar. 19^2 CONFIDENTIAL

porta that, according to information received from the Naval Liaison
Officer to the Armed Forces High Command, General Jodl has expressed
himself as favoring complete unification of all coastal defenses under
Army command. Furthermore, the Commanding General, Armed Forces,
France requested from the Chief of Staff, Armed Forces High Command
that "the Navy no longer be allowed to evade preparations for the re-
inforcement of coastal defenses". The Chief of Staff, Armed Forces
High Command allowed this request to enter the minutes without comment.

The Chief, Naval Staff is going to reject this unjust accusation in a
personal letter to the Chief of Staff, Armed Forces High Command; if
necessary he will report the matter to the Fuehrer. It will be made
clear that naval batteries have not been attacked to date for the
obvious reason that the enemy lmows how much better these units are
prepared to repulse attacks than are those of the other branches of
the Armed Forces.

III. On the occasion of the report on the Channel coast situation by
the Chief, Operations Branch, Naval Staff, the Chief, Naval Staff
orders that gunfire by coastal batteries with no observation of results
cease to be published.

IV. During the report on bomb hits on the GNEISENAU, the Chief, Naval
Staff orders an examination of how much ammunition must be taken off

a vessel each time she docks, since docks offer a particularly attrac-
tive target to enemy planes.

The GNEISENAU is to be transferred to Gdynia as soon as possible.

A decision concerning the repairs and the future of the GNEISENAU will
be deferred until the final report has been received from the Naval
Construction Division.

V. Because of the changed situation the Naval Staff, in accord with
Group North, proposes to postpone the intended transfer of the SCHEER
to Narvik until the time when the HIPPER has arrived in the northern
area. The Chief, Naval Staff consents to this plan.

VI. The Chief, Operations Branch, Naval Staff gives notice of the re-
port concerning troop transports via the North Sea to southern Norway
which was forwarded to the Fuehrer (see War Diary 1 Mar.). The Chief,
Naval Staff agrees with the report.

VII. The Chief, Naval Staff also endorses the Naval Staff's proposals
concerning sanction of Italian plans for using special weapons in the
Black Sea and concerning willingness to take a greater risk by allow-
ing the blockade-runners MUENSTER and PORTLAND to proceed to western
France, even though they will arrive there later than planned. (See
War in Foreign Waters.)

VIII. The Chief, Naval Staff, Quartermaster Division reports on the
employment of Croatian naval personnel as volunteers In the German
Navy. The Foreign Office offers no objections, so long as they do not
come in contact with the Italians. The Chief, Naval Staff agrees.

IX. The Chief, Operations Branch, Naval Staff reports on the stand
taken by the Foreign Office concerning the Japanese plans with regard
to Madagascar. Although these plans are welcome from a military point
of view, there are serious political objections with regard to the ef-

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2 Mar. 19^2 CONFIDENTIAL

fects on France, on the stability of the Vichy Government, etc. The
Naval Staff Intends to propose to the Armed Forces High Command that
French objections be removed through negotiations. For further de-
tails see War Diary, Part C, Vol. VIII. The Chief, Naval Staff agrees

Italian authorities object to the repair of the DUNKERQUE. The
Foreign Minister requests the Navy to make further action dependent
on the Fuehrer's decision.

X. Experiences in connection with recent major events have shown
that there is cause for adverse criticism of the time it takes for the
Navy to report to the Armed Forces High Command. The bulletins were
not forwarded fast enough, and in many instances lagged behind those
from the other branches of the Armed Forces. The Chief, Naval Staff
orders that a relevant directive be issued.

XI. The Chief, Naval Staff endorses the Naval Staff's memorandum for
presentation to the Fuehrer concerning the strategic conclusions to be
drawn from the current situation, with special attention to the prob-
lem of the Near East.

Situation 2 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation :

North Atlantic ;

The report of a foreign agent states that a British cruiser
of the ORION class docked in Brooklyn on 6 Feb.. The vessel came
from South Africa and showed severe damage, which apparently was sus-
tained in the East Asiatic theater of war.

South Atlantic ;

The auxiliary cruiser ASTURIAS sailed from Montevideo on
25 Feb. On 1 Mar. a convoy of four steamers and one destroyer was
reported near Victoria (Brazil).

According to foreign agent reports the destroyer GREER and the U.S.
gun boat LIND arrived damaged in Rio de Janeiro on 2h Feb. Both ves-
sels were damaged. It Is said that this damage was sustained during
the middle of February in connection with a German submarine attack
in the Caribbean Sea, which occurred near the spot where a Norwegian
steamer was sunk.

A French agent reports that a battleship of the KING GEORGE V class
and two submarines were in Freetown from 15 to 19 Feb. This prob-
ably is a case of mistaken identity of the battleship MALAYA.

According to an Italian report convoy WS 15 was located at about 26° S,
10° E on 7 Feb. On 9 Feb. part of a convoy bound for Durban was lo-
cated at 35° S, 16° E and another part bound for Capetown was located
in the area off that city.

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2 Mar. 1942 CONFIDENTIAL

Pacific Ocean :

According to radio monitoring the WARSPITE was located in the
vicinity of Australia on 2 Mar.

The report of an agent in the United States states that U.S. repair
ships and one aircraft repair ship are located in the vicinity of New
Zealand or Samoa. A squadron of planes from the LEXINGTON is current-
ly based on Samoa.

2. Own Situation :

At 2221 Norddeich received a position report from the OSORNO.
According to this the blockade-runner, concerning whose fate there was
already some anxiety, has progressed no farther than 24° N, J>6° W and
is making 8 knots. This is considerably slower progress than the cal-
culated speed of 12 to 14 knots.

Group Vest and the Commanding Admiral, Submarines are advised of this
fact.

Previously the OSORNO had received the following directive: "From to-
day on during the next four days two northbound and two southbound
convoys may be expected on the north- south route between 40° and 5O N"
(see Radiogram 1912 ).

The Naval Staff had taken into account that the blockade-runner will
not be able to reach western France until 4 May although according to
directive 25 Apr. was supposed to be the latest date for her arrival.
And now Etappe Japan has reported that the PORTLAND will be unable to
arrive on schedule either, due to delay in departure and to a detour
necessitated by the appearance of U.S. naval forces near the Marshall
Islands, and that she cannot be expected in western France before
10 May. Nevertheless the Naval Staff considers the rubber shipments
so important that the considerably greater risk of running the block-
ade off the Bay of Biscay in May Is justifiable In the case of both the
MUENSTERLAND and the PORTLAND.

See War Diary, Part C, Vol. I for the changes made in Annex 1 of the
operational order for ship "28", concerning the zone of submarine op-
erations, routes to be taken by prizes, and reciprocal exchange of In-
formation as per l/Skl Ik 488/42 Gkdos. Chefs.

II. Situation West Area

1. Atlantic Coast:

Group West temporarily defers the rendezvous mission for the
OSORNO.

2. Channel Coast :

At 0428 enemy PT boats again attacked the tanker MEMELLAND
and her tug but without success. One of the attackers was sunk. The
MEMELLAND has been brought into the outer harbor of Dunkirk and
beached there. This ship carries a cargo of 7*000 tons of fuel oil
and Is therefore of great value at this time; she is to be brought

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2 Mar. 1942 CONFIDENTIAL

into port with the next tide.

The mission of the 4th PT Boat Flotilla during the night of 2 Mar. was
without result. The flotilla turned back at 0005 because of increas-
ingly foul weather without sighting the enemy. For the brief report
see Telegram 0745.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation :

Considerable mine sweeping in the Thames and along the south-
east coast. Two shipwrecks were reported. Shipping in the Humber has
evidently been prohibited.

According to an agent report the newly built vessels BEATTY and
JFLLICOB are still sailing under the names of HOVE and ANSON which were
used while they were under construction.

The transfer of the large British naval vessels from the North Atlantic
area was confirmed. One vessel, presumably the RENOVN, is expected in
Barrow and another, the RESOLUTION, is expected at a base in Scotland.
The information originates from the engineering office of Rear Admiral
F.B.C. Turner. Statements from R.A.F. officers further confirm the
concentration of heavy naval vessels in Scotland. R.A.F. units are al-
so being transferred to Scotland. From 10 to 12 Feb. the FURIOUS was
located near the Faroe Islands.

Own Situation ;

The mine fields SW 4 and SV 5 were laid as planned. Nothing
to report concerning escort service and sweeping operations in the
area under the Commanding Admiral, Defenses, North. Aerial mines are
suspected in the areas off and north of Hanstholm. During the morning
the coastal batteries at Hook of Holland and Scheveningen were alerted
because an unidentified object, northbound at a speed of 20 to 25
knots, was located between 10 and 18 km. offshore. Recent observa-
tions confirm the suspicion that British convoys which sail along the
eastern coast are being protected not only by routine check sweeps but
also by an escort of mine sweepers immediately preceding each convoy.
Therefore the premise which led to the request for a device to permit
the mine to become active only for certain periods of time (" Pause nuhr")

For this reason the Naval Staff requests the Naval Ordnance Division,
Underwater Obstacles Branch to shelve the proposal for a "Pausenuhr"
for the present in favor of other projects with higher priority, the
most important of which is the period delay mechanism for the Fab XI
firing device.

2. Norway ;

Energy Situation :

On 1 Mar. air reconnaissance ranged as far as the ice border
in the area northeast of Murmansk and north of the North Cape, but ob-

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2 Mar. 19^2 CONFIDENTIAL

tained no results. Therefore it may be presumed that the expected PQ
convoy had not yet reached this area in the course of the day. Since
there is an ice border running approximately 200 miles north of the
North Cape, the course of the convoy must lie considerably more to the
south than was assumed until now.

On 2 Mar. reconnaissance missions flovn by two FW 200' s over the area
between the northern exit of the North Minch and the Faroe Islands ob-
tained no results.

According to statements of prisoners daylight traffic on the railroad
to Murmansk has been curtailed. During the night there are numerous
trains carrying fuel going from north to south. A considerable quan-
tity of war materiel, including tanks, has been accumulated in Mur-
mansk.

This leads to the conclusion that the supplies which are
carried to Murmansk by convoy are very plentiful, but
that their transport from there is difficult.

Own Situation ;

According to a report from the commanding officer of the
VANDALE there is no doubt that the harbor patrol vessel was sunk by a
torpedo hit on 27 Feb.

Supply and escort missions proceeding as planned. On 1 Mar. enemy air
raid on Haugesund, air raid alarms in Egeroe, Stavanger, and Bergen,
but no bombing.

On 2 Mar. an anti-submarine training force of three training vessels
and U "17" sailed from Stavanger toward the north.

The Commanding Admiral, Norway designates Svolvaer as the main base of
the 6th PT Boat Flotilla; part of the flotilla must be there at all
times on the alert. It is desirable that anchorages be changed from
time to time. The flotilla will be placed under the command of the Ad-
miral, Arctic Ocean.

«

The Commanding Admiral, Battleships reports to Group North that his
conference with the Commander, Anti-Aircraft Defenses revealed a sur-
prising lack of adequate anti-aircraft defenses in the region of the
Aasen Fjord. He requests urgently that the anti-aircraft artillery be
strengthened, searchlight batteries be erected, barrage balloons and
kites be employed, parachute wire rockets be used against strafing
planes, and that one of the four ME 109 flights intended for Trondheim
be exchanged for one FW 190 flight of Pursuit Wing 26. (See Telegram
1950.)

The Naval Staff is investigating the situation.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea :

The Armed Forces High Command decides that in view of the special im-
portance of the railroad bridge at Riga the CASTOR is to be employed
for the Riga mission when ice conditions permit and that transport op-

-13-

2 Mar. 1942 CONFIDENTIAL

erations are to be deferred temporarily. (See Telegram 2130 and War
Diary 28 Feb . )

The Fleet reports that the bomb which hit the GNEISENAU could not have
been larger than those which landed on the SCHARNHORST in La Pallice,
i.e., 864 kg.. The armored deck was only ripped open and not fully
penetrated. The detonation occurred above the armored deck.

Via letter l/Skl IL 495/42 Gkdos. Chefs, the Naval Staff directs the
Naval Liaison Officer with the Commander In Chief, Air to impress on
the Operations Staff that the planned surprise raid on heavy enemy
forceps in Kronstadt Bay should also include destroyers and submarines.
He is alsc to take measures which will give Group North the possibility
of forming a clear picture of the situation in the northern part of the
Baltic Sea on the basis of the reconnaissance observations of the 1st
Air Force, in order to eliminate the threat to our supply lines by
enemy operations. For a copy of the letter see War Diary, Part C,
Vol. III.

V. Submarine Warfare

1. Enemy Situation ;

West of Iceland a plane encountered an SL convoy at 54° N,
12° W. On 5 Mar. convoy SC 71 is supposed to be located in the ren-
dezvous area at approximately 58° N.

2. Own Situation ;

U "158" reports that en route to the American coast it sank
an 8,000 GRT tanker with two torpedoes followed by gunfire.

From the coast of Florida U "128" reported sinking two petroleum tank-
ers totalling 15,000 GRT.

En route to the west U "162" reported sinking an 8,000 GRT four-masted
freighter, probably of the ASTRONOMER class. On 28 Feb. U "129" re-
ported sinking a steamer of 4,000 GRT off the coast of Guayama.

Altogether, these reports represent a total of 35,000 GRT sunk. For a
supplementary situation report see War Diary, Part B, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity ;

Off Montrose, evening reconnaissance bombed and severely
damaged one steamer of 6,000 GRT and another one of 4,000 GRT.

2. Mediterranean Theater ;

The nuisance raids on Malta and the bombing of military
camps and troop columns in the Cyrenaica are continuing.

-14-

2 Mar. 19^2 CONFIDENTIAL

During the night of 2 Mar. fourteen Ju 88' s "based on Candia flew a mis-
sion to mine the Suez Canal; a simultaneous raid by thirteen He Ill's
on the air base at # E1 Kabrid near Alexandria served to divert the ene-
my' s attention.

3. Eastern Front :

During the night of 1 Mar. an aerial torpedo attack near
Kerch sank a steamer of 6,000 GRT. Another aerial torpedo attack was
launched during the night of 2 Mar.

Missions over the Black Sea and the Sea of Azov were badly handicapped
hy fog.

Most of the missions flown to support Army operations were over the
Barvenkova-Lostovaya area. For reports on further missions and success-
es see situation- report.

VII. Warfare in the Mediterranean

1. Enemy Situation ;

Evaluation of aerial photographs of Valetta shows the follow-
ing: 3 cruisers, 3 destroyers, 8 submarines, 2 steamers, 1 tanker,
and 1 mine layer. Of the 3 cruisers one, of the DIDO class, has un-
docked and another one, of the AURORA class, is in dock.

Towards noon air reconnaissance sighted a convoy escorted by three or
four planes 35 miles east of Marsa Matruh. No further data is avail-
able.

2. Situation Italy :

Enemy planes raided Tripoli during the night of 1 Mar.

3. Transport of Supplies to North Africa :

During the evening, the steamer PETRARCA is scheduled to
leave Taranto en route to Benghazi.

Ten of the seventy German soldiers aboard the steamer TEMBIEN were
rescued. Two hundred British prisoners of war were killed by the
torpedo hit in the hold.

4. Area Naval Group South :

Aegean Sea :

On 1 Mar. an enemy submarine was sighted near the southern
Cyclades. On 2 Mar. two enemy submarines southeast of Salonika fired
on coastal auxiliary sailing vessels.

Because of the submarine situation near Salonika the convoy of tankers
ALBARO and PR0D0M0S, en route from Trikeri to the Dardanelles, is being
rerouted and given additional escort of a second torpedo boat. Three
Italian subchasers are conducting a submarine hunt.

-15-

2 Mar. 19^2 CONFIDENTIAL

Black Sea :

Enemy Situation :

No nev observations by air reconnaissance or radio monitor-
ing.

Own Situation :

Enemy air raid on Nikolayev. Bombs fell in the vicinity of
the southern dock and the eastern air field but caused no damage.

Concerning Black Sea operations by Italian special weapons, the Naval
Staff reports to the Armed Forces High Command, Operations Staff (via
the Naval Liaison Officer) that upon the proposal made by the Command-
er in Chief, Navy the Italian Navy has detailed the following forces:

1. Four subchasers with a crew of 13 men each.

2. Six midget submarines with a crew of 5 men each.

3. Four small PT boats, each with a crew of four Italians.

All boats can be delivered by Mar. 19^2. The midget submarines and
the PT boats will be transported by land on specially built Italian
cars; possibilities for shipping the subchasers are still being ex-
amined. It is both desired and appropriate that all the boats be
manned by Italians. All forces will be under the tactical command of
the Commanding Admiral, Black Sea and under the administrative control
of an Italian officer to be detailed to the Commanding Admiral, Black
Sea. The Italian organization will be held to a minimum of officers
and men. The entire personnel will probably amount to from 150 to 200
men. Constanta is planned as a temporary base for all three groups.
As soon as the Army situation permits, it is intended to transfer the
base to the Crimea or some point still farther east. This is espe-
cially desirable in view of the small operating radius of the boats .
The transfer will be effected on the basis of the recent decision of
the Fuehrer. A conference with the Italians will take place at Sofia
beginning on 5 Mar. and after its conclusion another one will be held
with the Rumanians. For a copy of the corresponding telegram as per
1/Skl Im 478/42 Gkdos. Chefs, see War Diary, Part C, Vol. XIII.

VIII. Situation East Asia :

According to a report from the Military Attache in Tokyo, the occupa-
tion of Rangoon may be expected by 10 Mar.. All but minor remnants of
resisting enemy forces on Sumatra have been overcome. The Japanese
are approaching the oil fields of Jambi.

The advance on Java is proceeding according to plan.

IX. Army Situation

1. Russian Front :

Southern Army Group :

-16-

2 Mar. 19^2

CONFIDENTIAL

Enemy attacks on the Feodosiya front are continuing. At the
sector of the Von Klelst Army Group the enemy succeeded In penetrating
to some extent our front line on the Bakhmut In several places. Fur-
ther attacks are expected in the Samara River valley.

On the southwestern front of the 6th Army our forces attacked and ad-
vanced farther east across the Orel River.

Central Army Group ;

House to house fighting in Vesniny. The enemy gained some
territory near Lostovaya. All other enemy attacks in the 4th Army
sector were repulsed. Our troops are attacking north west of Demldov.
Fighting on the highway between Veluki and Suraj. Our forces are a-
gain in possession of the railroad from Veluki to Neval.

Northern Army Group ;

Enemy attacks near Kholm were repulsed. No reports are
available from the area south of Staraya Russa. Other enemy attacks
were repulsed.

2. Finnish and Norwegian Front ;

Artillery fire along the entire northeastern front.
?. North Africa ;

Situation unchanged.

*****#******«************

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AlWAJi'f «M.T.
AR'HI V"V
R£«EI V£D

JUN 1 1948

Q»»y n»ft*|»r

-17-

CONFIDENTIAL
3 Mar. 19^2

Items of Political Importance

Norway :

All bishops have resigned in connection vith the removal of the head of
the Norwegian State Church, Bishop Berggrav.

France :

According to comments from neutral sources, the great majority of the
French people are supporting Petain and his reconstruction program. It
is said that popular opinion is anti-German because of the delay in
settling the general Franco-German problem and because of the detention
of prisoners of war. Public opinion is by no means pro-British, how-
ever.

Great Britain :

General Wavell has been given the post of a commander in chief again,
this time in India. He is also responsible for military operations in
Burma as well as for Sino-British cooperation. Consequently the Dutch
themselves are in command in the Dutch East Indies.

Reuter's commentary on this delicate situation in which the Allies find
themselves is ambiguous. It states that Java can no longer serve
as the base for the Allied attack, and that the battle for this island
is no longer significant in the over-all strategic plan. The Dutch are
reacting as might be expected.

The change of Cabinet officials has by no means solved the slowly ap-
proaching crisis in Britain's interior affairs, the outcome of which
firmly hinges on the vital question of whether the Government will be
able to pursue its plan of continuing the war in the face of the dis-
astrous developments since last December, or whether the adherents of
the die-hard party will lose more and more of their influence during
the coming months and thereby make way for compromise and reason be-
fore it is too late. In any case, Churchill's decline and Cripps'
rise do not mean the peace party's ascendance. On the contrary, this
means merely a shift in emphasis. It is of much greater significance
that a personality like Beaverbrook severes his ties with Churchill
and resigns from all his offices, and that voices are being heard from
arch-conservative circles who are willing to resign themselves to Ger-
man supremacy over the European continent if such a sacrifice could
save the Empire.

Numerous members of Parliament voiced their opposition to air raids on
Germany, but Air Minister Sinclair declared on 28 Feb. that an air of-
fensive is an important preliminary to a successful invasion of Europe.
Now is the time to get a stranglehold. on Germany, not 19^3 and 1$M.
The ones to do this are the RAF and the Red Army.

South Africa :

A report from diplomatic sources states that opposition to Smuts is
constantly increasing. It is said that this prompts him to look for
success in the field of foreign policy and to consider the idea of

-18- '

3 Mar. 19^2 CONFIDENTIAL

occupying Lourenco Marques. The thought of defending Madagascar no
doubt has something to do with this plan; the occupation of this is-
land seems to preoccupy South African circles of late.

Sveden ;

The Swedish Government gave permission for transfer across Swedish ter-
ritory to Finland of 40 workers belonging to the Todt Organization,
since no members of the Armed Forces are involved.

According to a report from the Finnish Foreign Office, the Swedish
Foreign Office stated positively that should British forces land in
Norway or demand permission to march through Sweden, she will defend
herself with all her strength, whatever the consequences might be. It
would not be merely token resistance, but would be in dead earnest.

Turkey ;

The Turkish press states in an analysis of the problem of relations be-
tween Europe and Asia that Japan will fall heir to the Dutch colonies,
since neither Germany nor Italy lays claim to them. However, since
Europe will have future need for the raw materials she will have lost
in Asia, the present war, consciously or not, contains the seed of new
global conflicts.

The Turkish press also emphasizes the difficulties of an Anglo-Russian
rapprochement. They state that the appearance of Cripps poses the
question of whether it pays Britain to substitute Bolshevik tyranny for
National Socialist sovereignty.

Conference on the Situation with the Chief, Naval Staff .

I. The Chief, Naval Staff, Quartermaster Division reports on the
bomb raid on the MONTE SARMIENTO. An investigation revealed that the
alarm was sounded about a quarter of an hour before the bomb hit the
ship. The evacuation was retarded because the complement of approxi-
mately 500 men had had to abandon ship once before during the same
night. The bomb hit destroyed both ladders and resulted in 15 killed,
23 missing, and 46 wounded.

The Navy has completed its preparations for night fighter operations
at Kiel. On 30 Jan. the Air Force had not yet delivered planes or in-
struments.

II, The Chief, Naval Construction Division reports on the damage to
the GNEISENAU . The foundation of "A" turret must be lifted out. An
investigation revealed that the passageway between M A n and "B" tur-
rets was closed in accordance with regulations. The bow above the,
armored deck was overheated up to "B w turret. It will require approxi-
mately 9 months for about 1,000 workers to complete necessary con-
struction and repair of "A" turret in Gdynia. The vessel can be ready
for transfer in 5 or 6 days.

The Chief, Naval Staff orders that Group North report whether ice con-
ditions will permit the transfer.

-19-

J :.ar. 19*2 C0NFH: :~ IAL

III. Concerning the FRINI EUG3 r.e Chief, Naval Construction Bivision

that it is still too early to state vhether a nev r\ frame
is required. The casting has ceen ordered as a precaution in ai se.

Thf f.val Staff orders that a request he made for the ectec

"idheim to be assigned SS priority on the basis that the
Fuehrer explicitly ordered the execution of this project.

1 Staff, Operation: Bion, 7; reign Affairs Section si
cutline of the telegram to be sent to the Armed Forces
concerning the opinion :f the ::aval Staff on the question of

RQUE* (Compare V, T ar Disry 2 hiar.) Text of the tele-
_s in VTar Diary, Fart C, Vol. VIII.

e Chief, Naval Staff agrees .

V. C oncerning naval operations in the northern area , Grout North on
25 . :'-. ;:\ :.:;ated to' the Naval Staff, also informing the Fleet Com-
mand, that assignment of our naval forces to Troncheim is net enov
la the long run to discourage or tie up British naval forces {

vaters. Thus a transfer of German naval forces is not justified.
Therefore Group North suggests a diversionary operation cased at Trond-
heim for around 12 Kar., at vhich time the G: also

the HE Kill leave port. The Commanding Admiral, Battles. -ould
direct the TIRFITZ, the SCEB.F.R, and 2 destroyers; their mission vould
be to locate end destroy enery suitly transports end to divert the
enemy's attention from the GH --U.

The operation is planned as follovs: Sail to Jan Kayen and from there,
in a reconnaissance line approximately 120 miles vide vith the left
flank skirtir. border e ice region, proceed east up to about
25° F. Refuel the destroyers a second time end return to Tr In
during the fourth night of the operation. The operation must be sup-

rted by adequate air reconnaissance. The vessels should be received
and escorted in the Trondheim area by submarines, destroyers, torpedo
boats, and mine sweeper and motor mine sveeper flotillas.

Group North expects the enemy to interpret this operation as an at-
tempt to break* out into the Atlantic. Ke vill therefore shift his na-
val forces, which are nov attempting to check German operations in the
Arctic Oceh.., eir appi I

ent goal. Once the enemy fleet knows that the German vessels have re-
turned to Trondheim it will proceed to port; thus alleviated condi-
tions for the GNEISENAU's transfer will be created.

The Naval Staff, Operations Division comments in detail on this propo-
sal. It concludes that the plan can be considered basically sound but
must be deferred until the HIPPER has reached the northern aree e-
other prerequisites have been fulfilled. For a copy of the comme:
see ".."ar Diary, Part C, Vol. Ila.

The Chief, Naval Staff desires that Group North be requested to re-

ain from such an operation until the RTFPER Is ready for duty, par-
ticularly since the GNFISENAU is now out of commission and a diver-
sionary maneuver in support of her departure is no longer necessar
The Chief, Naval Staff's estimate of the situation is to be forwarded
to Group North.

Therefore on J> Mar. Group North receives the following answer to the
request of 26 Feb.:

-20-

3 Mar. 19^2 CONFIDENTIAL

"The Naval Staff basically agrees with Group North's concept concerning
the necessity for operations in the northern ares. However, the Chief,
Naval Staff requests that the planned operation be postponed until the
HIPPER is ready for action in the northern area, particularly since the
GNEISENAU is out of commission and there is no pressing need for diver-
sionary operations at this time. Within the next few days the Naval
Staff will forward Group North its estimate of the situation in the
northern area in order to clear up discrepancies."

VI. Concerning air forces ; The Chief, Naval Staff, Operations Division
reports on the proposal from Group North of 17 Jan. 1942 which concerns
the creation of a naval air force. As the initial step, the proposal
advocates the formation of a naval air force under the tactical author-
ity of the Navy, while the necessary planes, weapons (except for torpe-
does) and personnel would be furnished by the Ministry of Aviation.

The Commanding Admiral., Group North considers the present time espec-
ially opportune for preliminary work, so that as soon as the Russian
campaign is at an end and forces are released as a result we can prompt-
ly proceed with the proposed reorganization.

In the proposal from Group North the Naval Staff, Operations Division
fails to see a working basis desirable for organizing what Is later to
become a naval air force. Such an air force must be based on a Navy
possessing a large fleet, and its personnel must be homogeneous with
that of the Navy. Neither prerequisite exists at this time, and
neither of them can be created for the duration of the war. Therefore
the Naval Staff considers it impossible to reopen the naval air force
issue for the duration.

See War Diary, Part C, Vol. V for a copy as per l/Skl 1640/42 Gkdos. of
the proposal from Group North and the views expressed by the Naval
Staff, with which the Chief, Naval Staff agrees.

Some time ago the Navy reported to the Fuehrer that it agrees to the
temporary solution of the naval air force controversy but reserves the
right to report again at some future date in order to acquaint him with
the Navy's basic views on the problem. The Chief, Naval Staff desires
that it be determined whether the moment for this report is now at hand
in order to emphasize that the Navy lays claim to a final solution in
the form of its own air force.

VII. Organization of a PT boat command . Conforming to the earlier basic
decision from the Commander in Chief, Navy the Chief, Naval Staff, Quar-
termaster Division reports on the creation of a Commander, PT Boats and
the elimination of the post of Commander, Torpedo Boats. It will be
beat to transfer the torpedo boats to the Commander, Destroyers.

The Commander in Chief, Navy approves. The High Command, Navy, Officer
Personnel Division is to decide who will be assigned to the new command.

Special Items :

I. According to a report which the Foreign Office received from
Stockholm, the Swedish Foreign Minister has evidently learned from the
Norwegian Legation in London that the British have no plans for an op-
eration in Norway during 1942. The British Government is said to have

-21-

3 Mar. 19^2 CONFIDENTIAL

agreed to refrain from even minor actions against the Norwegian coast
as the Norwegian Government in London requested because of German re-
taliatory measures. The Foreign Minister added that this has no bear-
ing whatsoever on Sweden's military preparedness.

II. In compliance with the directive from the Armed Forces High Com-
mand, Operations Staff of 9 Jan. 19*12, a detailed examination has
brought about an agreement between the Commander in Chief, Navy and the
Commander in Chief, Air on the feasibility of transferring the develop-
ment and manufacture of aerial torpedoes to the Air Force. On j5 Mar.
this agreement is submitted to the Armed Forces High Command, Operations
Staff in the form of a joint proposal from both branches of the service,
recommending that the field of aerial torpedoes be transferred to the
authority of the Commander in Chief, Air. The Commander in Chief, Navy
adds the remark that as far as releases of materiel and personnel are
concerned, the Navy has gone to the limit beyond which he can no longer
be responsible for its present tasks.

As soon as the Fuehrer makes his decision the transfer can be effected
without further delay.

III. The Naval Staff, Quartermaster Division and the Naval Construction
Division have worked out the order in which the 6 PT boats and the 8
large motor mine sweepers are to be transferred to the Black Sea. k
small motor mine sweepers and 14 fishing smacks are also to be included.
The Naval Staff is particularly interested in getting the vessels under
way as soon as possible. The 6 PT boats are at Kiel, and can leave when
ice conditions permit. 3 weeks after the PT boats have arrived in Dres-
den, the Commanding Admiral, Defenses, West will order the 8 large motor
mine sweepers to proceed there. The right to decide on the transfer of
naval barges is reserved by the Naval Staff, Quartermaster Division,
which assumes that a simultaneous transfer of the 5 submarines one at a
time at three-week intervals will present no difficulties,.

IV. Of late it has been the frequent experience of the Naval Staff
that it did not receive sufficient information on important develop-
ments. Therefore the Chief, Naval Staff has ordered that important de-
velopments as well as measures initiated or planned in connection with
them are to be reported to the Naval Staff as soon and as thoroughly as
possible. A directive to this effect is forwarded to the Group Commands;
the Fleet Command; the Commanding Admirals Norway and France; the Na-
val Stations; the German Admiral, Rome; and the Commanding Admiral,
Submarines. (See Telegram 1919.)

V. On 28 Feb. the High Command, Navy, Naval Construction Division
(in agreement with the Naval Staff, Quartermaster Division) and Group
North Issued contradictory orders to torpedo boat T "V (see War Diary
28 Feb.). This incident causes the Naval Staff to observe to the Naval
Staff, Quartermaster Division, Fleet Branch that Group North and the
Commanding Admiral, Battleships should have been Informed of the High
Command's order for the vessel to return. The contradictory order from
Group North placed torpedo boat T "4" in a most undesirable position.
The incorrect issuing of orders moreover caused an unnecessary consump-
tion of fuel and delayed necessary repairs.

-22-

3 Mar. 19^2 CONFIDENTIAL

Situation 3 Mar. 19^2

I. , War In Foreign Waters

1. Enemy Situation :

North Atlantic :

The report from a British agent states that the CARNARVON
CASTLE Is no longer serving as an auxiliary cruiser but as a trans-
port, apparently due to the shortage of transport vessels.

According to Radio London, the U.S. Secretary of the Navy has announced
that 140,000 men have volunteered for service with the U.S. Navy, so
that it is unnecessary to draft men for naval duty.

South Atlantic :

On 2 Mar. one 10,000 GRT cruiser and 4 submarines of undeter-
mined nationality passed Ifnl on a southern course.

A French report states that on 26 Feb. a British auxiliary cruiser was
located about 270 miles southwest of Freetown. On 3 Mar. a British
steamer sighted a submarine 150 miles southwest of Freetown. (it is
improbable that this was a German submarine.)

Indian Ocean :

The U.S. radio station Cavite broadcast submarine warnings
for points off the southwest coast of Australia. The U.S. destroyers
reported in Valparaiso left on 21 Feb.

2. Own Situation :

The DOGGERBANK received the following order via Radiogram
0913: DOGGERBANK operates as auxiliary cruiser. Mission "Kopenhagen".

Via Radiogram 1211 the 030RN0 was advised as follows:

1. The Naval Staff assumes that after, reporting her position
the vessel made a radical change of course.

2. All former orders are rescinded. The new sailing di-
rective reads as follows: Head for point "Max" via noints "Ostsee-
krabbe", "Hans", and "Bruno".

3. Location of new points contained in separate radio-
gram.

k. Keep strict radio silence from now on.

Radiogram 1^57 advises the 030RN0 about the location of the new points
as per Paragraph "3" above.

Letter 1414 informs Etappe Japan that the 0S0RN0 reported her position
on 2 Mar.. Etappe Japan is directed to train blockade-runners to zero
beat their transmitter and receiver equipment to insure accurate two-
way contact on first call, since Norddeich had to broadcast several re-
quests for a position report from the 0S0RN0 until she finally ans-

-23-

3 Mar. 19^2 CONFIDENTIAL

vered on the frequency used by merchant vessels.

Radiograms 0715, 1507, and 2348 advise all hands in foreign vaters of
Japanese successes near Java and of the enemy situation.

II. Situation ue;t Area

1. Enemy Situation :

From 2120 to 2225 Dover kept a fix on 2 German groups between
Cape Gris i;ez and Calais. At 2220 a torpedo attack by a PT boat vas re-
ported .

The British Admiralty reported of the night of 1 Mar. that a PT boat
torpedoed a German tanker from a heavily escorted convoy in the Channel,
and that British naval forces fought in several engagements, allegedly
sustaining no losses.

2. Own Situation :

Atlantic Coast :

Group Vest and the Commanding Admiral, Submarines are advised
that for the time being the Naval Staff, Operations Division will re-
tain command over the 0S0RN0-. The order for escorting the vessel into
port remains in effect and 1 submarine is to meet her at point ''Cstsee-
krabbe". On £ tor. at 0000 German Standard Time Group West will take
charge of the 0SCRN0. Arrangements for a rendezvous point, the time of
rendezvous, and recognition signals should be made in cooperetion with
the Commanding Admiral, Submarines. The message also informs Group West
and the Commanding Admiral, Submarines of the directive which the Naval
Staff issued to the CS0RN0. (See Radiograms 1211 and 1457.)

Channel Coast :

The tanker MEKELLANB was warped into the inland harbor of
Eoulogne (not Dunkirk as was erroneously reported on 2 Mar.).

The valuable cargo of fuel oil should therefore be
safe.

While battery 655 E vas shelling ships which had been located, without
observing results, a shell exploded prematurely and caused loss of per-
sonnel .

At 2223 the convoy of steamer "H 12" was attacked by enemy FT boats
north of Cape Gris Nez. Steamer "H 12" sustained a torpedo hit and
sank. She is the JEAN JACQUES, and was scheduled for use as a troop
transport in the North Sea. At 2300 the 2nd Motor Mine Sweeper Flo-
tilla had a brief skirmish with British PT boats, one of which was
damaged and withdrew.

This is the second time within* 2 days that enemy PT boats
have scored successes against our convoys.

-24-

3 Mar. 19^2 CONFIDENTIAL

Air Situation ;

From 2110 to 2340 strong enemy air forces raided factory dis-
tricts and suburbs of Paris. Cur defenses against the low-flying (300
meters) raiders were wholly insufficient and ineffective. Detailed re-
ports have not yet been received.

III. North Sea, Norway, Arctic Ocean

1. North Sea :
Nothing to report.

2. Norway ;

Enemy Situation :

During the morning air reconnaissance spotted a naval vessel,
probably a heavy cruiser, 170 miles northeast of Vardoe on a course of

■;nO

230

Own Situation:

On 2 Mar. at 2000 the hydrophone station at Stavoey reported
electric motor noises in the Aasen Fjord. A submarine chase in that
area was unsuccessful. Transport and escort operations proceeded ac-
cording to plan; nothing to report. On 2 and 3 Mar. enemy air activ-
ity over Stavanger and the Oslo Fjord.

Group North requests that the 4th and 5th Mine Sweeper Flotillas, the
5th Motor Mine Sweeper Flotilla, and the 11th Subchaser Flotilla be
transferred to the administrative command of the Commanding Admiral,
Norway, and likewise that the 7th and 22nd Mine Sweeper Flotillas,
which are being organized under the Commander, Defenses, North, also
be placed under the administrative command of the Commanding Admiral,
Norway on being transferred. (See Telegram 1839.)

The Naval Staff, Quartermaster Division will take charge of further de-
tails.

The Commanding Admiral, Norway reports that he has 2 protective nets
available in Bogen Bay for use alongside large ships, but adds that
they have only temporary value because the floats are inadequate. (See
Telegram 1930. )

The Commanding Admiral, Norway comments in detail on the request from
the Commanding Admiral, Battleships of 2 Mar. concerning reinforcement
of anti-aircraft defenses in the Aasen Fjord area (see War Diary 2 Mar.)
For a copy as per l/Skl 5074/42 Gkdos. see War Diary, Part C, Vol. Ila.

Group North endorses as urgent the exchange of a squadron of ME 109 E's
in Trondheim for modern FW 190 pursuit planes as proposed by the Com-
manding Admiral, Battleships. Group North states that the prevention
of enemy air reconnaissance is urgently desired not only to protect
the vessels but also for operational reasons.

In compliance with the request the Naval Staff will approach the Air

-25-

3 Mar. 19^2 CONFIDENTIAL

Force High Command, Operations Staff.

IV. Skafcerrak, Baltic Sea Entrances, Baltic Sea ;

The 5th Mine Sweeper Flotilla laid mine field VIII in the Skagerrak as
planned.

Telegram 1919 advises Group North of the Armed Forces High Command de-
cision that the icebreaker CASTOR is to operate in the Gulf of Riga
whenever Group North decides that conditions warrant. Information con-
cerning this decision was also forwarded to the Commanding Admiral, De-
fenses, Baltic Sea; the Admiral, Baltic States; the Commanding Gener-
al, Armed Forces, Baltic States and White Ruthenia; the Naval Staff,
Quartermaster Division; and the Naval Staff, Hydrographic and Metereo-
logical Division.

Naval Station, Baltic has raised objections concerning the use of Es-
tonian fishing boats in the group commanded by Cellar ius (see War Diary
27 Feb.). However, the Naval Staff, Operations Division does not hesi-
tate to endorse such a move and believes that It is more advantageous
to requisition the boats on the spot than to initiate action via Naval -
Station, Baltic and the High Command, Navy. The Naval Staff especially
commends the initiative taken by the Admiral, Baltic States.

The Naval Staff, Quartermaster Division is informed accordingly.

Nothing to report concerning the naval situation in the Baltic Sea.

V. Submarine Warfare

1. Enemy Situation :

Limited air activity. The Brazilian steamer LYDIA M (3r664
GRT) is stranded near Cuba. As a protest against the torpedoing of 2
steamers the Brazilian Government seized 6 Danish ships totalling
22,000 GRT.

Newspaper reports state that submarines sank the U.S. destroyer JACOB
JONES, the U.S. freighter KARONE (8,215 GRT), and the British steamer
MACGREGOR (2,500 GRTJ.

2. Own Situation :

Information of the GERMANIA's sailing on the evening of.
4 Mar. is relayed to the Commanding Admiral, Submarines with the di-
rective to arrange for a submarine to pick her up on 13 Mar. In quad-
rant CD J>6.

For a supplementary situation report see War Diary, Part C, Vol. IV.

-26-

3 Mar. 19^2 CONFIDENTIAL

VI. Aerial Warfare A

1. British Isles and Vicinity :

Our planes mined the Thames during the night. Attacks on
ships met with no success.

Between 10 and 15 planes raided the coastal area of northern Germany.
See Situation V, r est Area for reports about the enemy raids on Paris
which caused considerable damage and caused heavy casualties among the
civilian population.

2. Mediterranean Theater ;

During the night of 2 liar, our planes raided the air bases
at 21 Kabrit and Tanta as planned vith good results. Mine-laying mis-
sions against the Suez Canal vere flovn simultaneously and 7 of the 25
mines dropped landed in the fairway as planned. Alexandria was raided
during the evening.

The nuisance raids against air bases on Malta and the raids on the sub-
marine base at Valetta were continued.

3. Eastern Front :

The Army received air support.

VII. Warfare in the Mediterranean

1. Enemy Situation :
Nothing to report.

2. Situation Italy :

During the night of 2 Mar. the steamer CUMA sustained a bomb
hit and caught fire at Palermo. Her cargo was destroyed, including
1,314 tons of German fuel and 1,790 tons of German military supplies.
An enemy air raid on Benghazi caused no damage. On 1 Mar. the auxil-
iary cruiser EGITTO struck a mine in the Taranto roadstead and sank.

3. Own Situation :

The German Naval Command, Italy asks the Naval Staff, Opera-
tions Division to transmit all data available on enemy mine fields, in-
cluding harbor defense barrages, in the eastern Mediterranean.

4 . Transport of Suppl ie s to N orth Africa :

Three naval barges left Tripoli en route to Benghazi. Two
of these are to proceed to Derna if the mine situation permits.

5 . Are a N aval Group South :
Aegean Sea :

An enemy submarine sank a third auxiliary sailing vessel in

-27-

3 Mar. 1942 - CONFIDENTIAL

the coastal area off Salonika. 11 German soldiAs drowned and 3 were
badly wounded. All traffic of unescorted auxiliary sailing vessels'
carrying members of the Armed Forces has been discontinued temporarily.
The submarine threat necessitates that escort vessels proceed only in
groups while in the northern Aegean Sea.

In view of serious delay in shipments from Italy to Piraeus, Group
South proposes that a regular convoy system be established, and requests
the Naval Staff's assistance.

Further action will be Initiated by the Naval Staff, Quartermaster Di-
vision, Shipping and Transport Branch (see Telegram 1243).

Black Sea :

Enemy Situation :

During the night of 2 Mar. Feodosiya was subjected to air
raids and a brief naval bombardment. Air reconnaissance reveals that
11 transports left Sevastopol.

Prisoners state that the Black Sea fleet is not equipped with its own
magnetic mines, but they confirm the fact that British magnetic mines
are in use.

The BOYKIY class destroyers have a maximum soeed of 40 to 42 knots and
those of the SPOSOBUY class can make up to 44 knots. Contrary to ru-
mors the cruiser KRASNY KAVKAZ was not sunk near Feodosiya but was bad-
ly damaged. At the outbreak of war some S class submarines are said to
have escaped to the Mediterranean via the Bosporus. German aerial
mines are being removed by towing barges loaded with scrap iron over
the location where it was observed that they were dropped.

Own -Situation :

Nothing to report.

5. Situation France :

*

A French report to the Armistice Commission states that on
1 Mar. the French steamer P.L.H. 20 was Bunk near Scusse by 2 subma-
rine torpedoes while sailing in an escorted convoy. The French dele-
gation rightfully points out that due to the orders issued by the Arm-
istice Commission convoys are unable to protect themselves against sub-
marines. They propose that zones be designated in which arms may be
used against any submarine attacking a French convoy. As yet the
Italians have likewise failed to agree concerning the use of terri-
torial waters. (See Telegram 1855.)

For further details see War Diary, Part C, Vol. VIII.

VIII. Situation East Asia

1. Enemy Situation :

An official report from Batavia states that the motor de-
stroyer ROSALE sank a Japanese flotilla leader during a night attack

-23-

3 Mar. 1942 CONFIDENTIAL

in the eastern part of the Java Sea.

2. Situation Japan :

According to a report from the Naval Attache in Tokyo, the
Japanese Admiralty Staff accounts about the naval battle in the Java
Sea are vague and hardly vary from newspaper reports.

According to Domei 6 enemy cruisers, 8 destroyers, 7 submarines, 1 gun
boat, and 1 mine sweeper were sunk. The cruisers in question were the
U.S. cruiser HOUSTON, the British cruiser EXETER, the Australian crui-
sers FERTH and H03ARTH, and the Dutch cruisers DE RUYTHER and JAVA.

The HOUSTON and the DE RUYTHER were already reported as sunk on k Feb..
Now the Japanese Navy corrects that report, stating that those vessels
were the AUGUSTA and the TROMP.

According to Domei 1 Japanese mine sweeper was sunk and 1 destroyer
slightly damaged.

The Japanese Navy is justly proud of this success re-
sulting from twenty years' training for night fighting.

IX. Army Situation

1. Russian Front ;

Southern Army Group :

No attacks took place in the Crimea.

In the area south of Losovaya an enemy cavalry corps was defeated and
thrown back in northerly direction. Enemy attacks near Bakhmut again
met with no success.

The combat force which started an advance to the east in the Orel sec-
tor gained further territory.

Enemy attacks east of Kursk and west of Livny were ropulsed.

Central Army Group :

Enemy attacks on the Yukhnov front were repulsed. Our units
advancing from the area south of Vyazma gained territory to the south.
An enemy attack on the Dnieper bridge was repulsed.

Our artillery was able to smash most of the strong enemy attacks north-
west of Rzhev. Only 1 small enemy penetration remains to be mopped up.

Enemy pressure on the Demidov sector brought our advance to a halt.

Northern Army Group :

The battles around Kholm and in the Staraya Russa area are
continuing with undiminished tenacity.

-29-

1 . _: --_ :::r-.:e~lEn Pro. it :

.3 sit .: unci] 1.

Frica:

— i

. concern J rearrangement of the enemy's "ion

In el Sazala see today's situation rerort.

in- t lace.

*************************

-30-

CONFIDENTIAL
4 Mar. 19^2

»

Items of Po l itical Importance

Great Britain :

The Minister for Supply stated in the House of Commons that supply re-
serves during the second half of 19^1 vere j50# higher than at the end
of 19^0 due to increased shipments from abroad. However, this year it
has become necessary to curtail both imports and rations. During the
debate black market operations were criticized and a total ration
system advocated. The desire was expressed that publication of ship-
ping losses be resumed.

i

India :

Sumner Welles declared that a North American supply commission will be
sent to India in the very near future and that other vital measures
for aiding India's defense will also be instituted in Washington.

Egypt :

Because the food situation has deteriorated to a very critical point,
shipments of military supplies are being curtailed temporarily and the
resultant shipping space devoted to transport of food for the Egyptian
population. Certain amounts of the cereal reserves allotted to Brit-
ish troops will be made available to feed the civilian population.

The morale of Allied troops stationed in Egypt is said to be extreme-
ly low. The Australians want to go home and the De Oaullist troops
feel that they are being neglected.

King Farouk maintains his completely anglophoblc attitude for which
the new Prime Minister tries to compensate through necessity. Anti-
British sentiment among the population is not increasing only because
of the still greater antipathy toward Italy.

Portugal :

On 2 Mar. more than 300 persons suspected of revolutionary tendencies
were arrested, among them higher officials of the postal and telegraph
administration. The fact that the plot called for an attempt to as-
sassinate Salazar and was designed to bring about a British occupation
of Portugal is causing a special sensation.

On 28 Feb. the Japanese Government urged the Portuguese Government to
withdraw Immediately the transport now en route to Timor to west of
90° longitude.

U.S.A. :

The following allotments were made from the $39,000,000,000 armament
appropriation: For the Army $22,000,000,000, for Lend-Lease
$5,500,000,000, and for the ship construction program $5,000,000,000.

In a speech on 2 Mar. the Chairman of the War Production Board, Nel-
son, announced that a control system will be introduced in which la-
bor and management cooperate to increase production. Following the

-31-

ar. 19^2 COKFIDEKTIAL

example of Soviet Russia, production charts of individual workers are
to be posted In every plant and awards introduced such as the honorary
title 1, Soldier of Industry".

According to Reuter a plan is under consideration In Washington where-
by the sovereignty of African possessions held by De Gaulle would be
recognized on a basis similar to the one just adopted for possessions
in the Pacific.

Conference on the Situation with the Chief, Nave l Staff .

I. The Chief, Operations Eranch, Naval Staff reports on the request
from the Commanding Admiral, Eattleshlps for a reinforcement of anti-
aircraft defenses in the Aasen Fjord (see War Diary 3 Mar.). The
Chief, Naval Staff orders that the matter be brought to the attention
of the Air Force High Command, Operations Staff once more In any case.
The Naval Staff, Operations Division will arrange further details.

II. For the first tine the blockade -runner TAKNENFELS will be able tc
sail via the Strait of Sunda and thereby shorten the trip from Europe
considerably. In due time the new situation in the Indian Ocean will
also afford the opportunity to employ the fast Navy tankers for oil
Imports from the Sunda Islands.

III. Concerning the remark that the Navy should not be allowed to
dodge preparations for reinforcing coastal defenses which the Deputy
Commanding General, Armed Forces, France made to Field Marshal Keitel,
the Chief, Naval Staff, Quartermaster Division is ordered to express
in a personal letter from the Chief, Naval Staff to the Chief of
Staff, Armed Forces High Command that sharp exception is taken to the
above statement by General Sperrle. None of the failures mentioned
can be ascribed to the Navy, obviously because the Navy's coastal de-
fense installations are better prepared than those of the other
branches of the Armed Forces. There is no reason for changing the com-
mand organization in coastal defenses. If a unified command Is to be
organized at all, then the Air Force should also be brought under its
authority. In any case the Commander in Chief, Navy desires that the
Navy be consulted if plans are drawn up for an organization of this
kind.

IV. The Chief, Naval Staff, Quartermaster Division reports that a
further reduction of raw material allocations has been announced
which is supposed tc become effective as early as the second quarter
of 19^2. The cut in the copper quota alone would lower the potential
for completing submarines from 16 per month to 9, and would permit
construction of only 1 new destroyer and 2 new torpedo boats per year.
A survey of the consequences which this new reduction entails will be
presented by the middle of next week. It is quite obvious that such

a curtailment of surface vessels would make it impossible to carry
out even the transport tasks for the entire Armed Forces. Even a
temporary reduction of raw material allocations would make it extreme-
ly difficult to reach maximum output again once full production is re-
sumed .

V. The Naval Staff, Operations Division, Foreign Affairs Section re-
ports that the German Armistice Commission will attempt to resume

32-

^ Mar. 19^2 CONFIDENTIAL

Franco-German negotiations concerning the so-called "Rommel tonnage"
on an economic basis since previous negotiations on a military basis
have failed. Negotiations in general had temporarily assumed a more
amiable character, but now it is felt that the atmosphere is becoming
tense once more. For further details see War Diary, Part C, Vol. VIII,

VI. The Chief, Naval Staff, Operations Division reports on the con-
ferences between the Army High Command and the Naval Staff concerning
employment of the icebreaker CASTOR off Duenamuende as soon as ice con-
ditions permit, and on the permission granted by the Armed Forces High
Command to withdraw the CASTOR from transport operations to Norway for
this purpose.

An additional report concerns the expectation that the new chairman of
the Norwegian Shipowners' Association appointed by Reich Commissioner
Terboven will be able to persuade those shipowners who are still pro-
British to work in the German interest. The matter is in the hands of
the Mercantile and Economic Warfare Division of the Armed Forces High
Command. The Chief, Naval Staff desires that the Commanding Admiral,
Norway be consulted in decisions pertaining to this problem.

VII. The Chief, Naval Staff endorses the transfer of the railway bat-
tery from Boulogne to the Gulf of Finland as proposed by the Chief,
Naval Staff, Quartermaster Division.

Special Items :

I. On 20 Feb. 19*12 the Naval Staff, Operations Division issued an
estimate of the situation analyzing strategic requirements for future
operations by the Tripartite Powers which are indicated by the present
situation. These requirements are summarized as follows:

Oil procurement is the most important strategic requirement. The stra-
tegic key position which is most significant for future war develop-
ments is Suez . The Naval Staff is convinced that a successful early
offensive against the Suez Canal, which is Britain's main artery, and
later the establishment of a direct sea connection with Japan will
have a devastating effect on Anglo-American warfare. These steps are
therefore of decisive importance to the outcome of the war .

Upon authorization by the Chief, Naval Staff (see War Diary 2 Mar.) a
Naval Staff memorandum containing in condensed form the thoughts de-
veloped in the estimate of the situation was forwarded on 4 Mar. to
the following authorities: The Naval Aide to the Fuehrer for the
Fuehrer's information; the Armed Forces High Command, Operations
Staff; the Air Force High Command, Operations Staff; the Army Gen-
eral Staff; the Foreign Office (attention of Ambassador Ritter); as
well as the Armed Forces High Command, Foreign Intelligence Section.

For a copy of the memorandum and the estimate of the situation as per
l/Skl lb 507A2 Gkdos. Chefs, see War Diary, Part C, Vol. "Fundamen-
tal Problems of Warfare".

The estimate of the situation on which the memorandum is based was
brought to the attention of the Naval Liaison Officers; the depart-
mental chiefs in the Naval High Command; and the Chiefs of the Naval

•33-

4 Mar. 1942 CONFIDENTIAL

Staff Quartermaster Division, Coramuni cat ions Division, Submarine Divi-
sion, and Intelligence Division.

II. The Commander in Chief, Navy ordered that explanatory notes and
basic guiding principles be appended to the directive regarding arma-
ments for 1942 issued by the Fuehrer and Supreme Commander on 10 Jan.
1942. See War Diary, Part B, Vol. V for a copy of the directive as
per Ski Qu A 350/42 Gkdos. of 20 Jan. 1942.

Situation 4 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation ;

South Atlantic ;

According to a French newspaper report 2 Argentinean crui-
sers and 4 destroyers sailed from Buenos Aires bound for Bahia Blanca,
from vhich base they will patrol the South Atlantic coast.

2. Own Situation:

ceived.

Reports from forces in foreign waters have not been re-

Via Radiogram 1838 the CHARLOTTE SCHLIEMANN was directed to maintain,
or if possible accelerate, a minimum cruising speed of 7 knots in
every way feasible. The use of anchor chains is recommended for re-
moving barnacles. She is ordered to maintain radio silence under all
circumstances, even if her speed exceeds or falls below the estimate
of the Naval Staff.

The GERMANIA received sailing directions via Radiogram 2302.

News of Japanese successes in the Java Sea and enemy reports were

transmitted via Radiogram 2129. Submarine positions as broadcast by ^

Ca'v' -e on 3 Mar. were transmitted via Radiogram 1632. ^

II. Situation West Area

1. Enemy Situation ;

Radio London reported correctly that last week the German
motor ships HENK and THRIANTHA carried parts of the cargo of the ELSA
ESSBERGER from Ferrol to Bayonne.

2. Own Situation ;
Atlantic Coast ;

Group West reports that the Commanding Admiral, Submarines
and the Air Commander, Atlantic Coast have entered into an agreement

-34-

4 Mar. 19^2 CONFIDENTIAL

according to which the latter vill provide air cover for arriving and
departing submarines whenever there are enough AR 196' s and weather
conditions permit them to operate. It is impossible to assign this
task to HE 115' s because there are too few of them. (See Radiogram
1055.)

Channel Coast ;

A report from Group West states that during the night of
3 Mar. between 8 and 10 enemy PT boats attacked the steamer JEAN JAC-
QUES. The ship sustained 2 torpedo hits. 8 crew members are missing.
The patrol vessels suffered no damage or losses.

Increased activities of British PT boats compel us to
supplement our defensive measures.

The enemy has also increased mine-laying operations in the area of the
Commanding Admiral, Defenses, West. 208 mines, 23 of which were
ground mines, were swept between 1 and 28 Feb.. The destroyer HEINE-
MANN, mine exploding vessel "171", mine sweeper "1208", and 2 barges
were sunk by enemy mines.

This noticeable increase in our losses is most regret-
table. Our comparatively weak mine sweeper and motor
mine sweeper forces must exert themselves to the utmost
in order to gain control over the situation. It may be
assumed, however, that our current mine offensive off
the British coasts is resulting in comparable enemy
losses.

In the course of February the enemy made 15 plane attacks on vessels
belonging to the Commanding Admiral, Defenses, West, during which 12
enemy planes were certainly shot down and 3 more probably were. 11 of
our vessels sustained damages. 16 crew members were killed and 88
wounded.

Civilian casualties from the enemy air raid on Paris on 3 Mar. are
estimated at about 800 killed and 1,200 wounded.

During February 19^2 convoys in the area of the Commanding Admiral,
Defenses, West comprised 550 vessels totalling 333,000 GRT.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation ;

According to radio monitoring an unidentified steamer sank
near Yarmouth apparently due to a mine hit.

Own Situation ;

Convoy and patrol missions proceed according to plan. Noth-
ing to report.

-35-

k Mar. 19^2 CONFIDENTIAL

During the night of 3 Mar. several enemy planes flew over Heligoland
Bight. It is suspected that aerial mines were laid in the area north
of the East Frisian Islands. (See Telegram 0850. )

2. Norway ;

Enemy Situation :

Air reconnaissance observed 15 small steamers lying in Mur-
mansk. One submarine was seen entering Kola Bay. A 1,000 GRT steamer
and a southbound patrol vessel were located ea3t of the Rybachi Penin-
sula. 6 mine sweepers were operating east of the Kildin Islands. No
vessels were spotted between North Cape and Bear Island. It was ob-
served that the drift ice ends at 54° n, 13° E and the pack ice at
73° 31' N, 17° 20 « E.

Own Situation :

On 3 Mar. an enemy submarine failed in a torpedo attack on
subchaser "1105" near Nordkyn. The Submarine was pursued and air bub-
bles and oil spots appeared after the third depth charge had been drop- f
ped. Contact with the submarine was lost when the search receiver
ceased to function, but the chase continued.

The position of the submarine in the exit of the Por-
sanger Fjord proves how ineffective it is to declare
a mine danger area without actually laying mines. It
is desired that the planned mine field be laid at this
point as soon as the mines arrive which are now en
route aboard the DLM.

Supply operations are proceeding according to plan. Nothing to re-
port.

The 5th Mine Sweeper Flotilla, made up of 7 vessels, sailed from
Kristiansand South toward the north.

The report from the Admiral, Arctic Coast concerning a mine field off
Kvaloe is in War Diary, Part C, Vol. Ha as per l/Skl 5195/^2 Gkdos.

In answer to the request from the Naval Staff concerning substitution ~

of FW 190 fighters for an M 109 E squadron in Trondheim as proposed %^

by the Commanding Admiral, Battleships, the Air Force High Command,

Operations Staff advises that on 3 Mar. Group IV of the 1st Fighter

Wing relieved the fighter unit stationed in Trondheim. The new unit

is equipped with BF 109 models E and F. In the course of the month

all model E planes will be replaced by model F. The BF 109 F's are

superior in performance to the FW 190' s. Moreover, for technical

reasons it is impossible to fly FW 190' s in Norway.

Group North, the Commanding Admiral, Norway, and the Commanding Ad-
miral, Battleships are being informed accordingly.

See Telegram 1818 for the agreement concerning the fuel supply for the
5th Air Force as reached by the Naval Staff, Quartermaster Division,
Shipping and Transport Branch; the Air Force General Staff, Division
IV; and the Supply and Transportation Office of the Armed Forces
Overseas.

-36-

k Mar. 19^2 CONFIDENTIAL

In order to Initiate preparations for the projected attack on the Ry-
bachi Peninsula (see War Diary 25 Feb.) Group North issued the follow-
ing directive to the Commanding Admiral, Norway, of which the Naval
Staff and the Admirals Arctic Coast and North Norwegian Coast were al-
so informed:

1. Prepare berths for 2 heavy vessels, 1 destroyer flotilla, mine
sweeper, motor mine sweeper, and PT boat flotillas and naval barges in
the Arctic Coast area (Alta Fjord).

2. Clear the supply ships DITMARSCHEN and NORDMARK and transfer them
north as soon as possible.

J>. The Commanding Admiral, Norway will initiate anti-mine patrols in
the projected landing areas.

4. Mine laying by our own forces is to be coordinated with the oper-
ation.

5. Initiate procurement of naval barges and assault craft.

Group North states in conclusion that the operation
cannot be carried out unless the required quantity of
fuel oil Is delivered to the northern area in time.

The Commanding Admiral, Norway answered at once on 4 Mar. on the basis
of experiences made on the Arctic Coast, emphasizing how necessary it
Is to take the enemy by surprise. He insists that the enemy's atten-
tion must not be invited by measures deviating from daily routine, as
for instance by the anti-mine patrol ordered by Group North. Instead
of a move so ostentatious as the transfer of the heavy vessels to the
Arctic Coast, the Commanding Admiral, Norway recommends a diversion-
ary maneuver in the direction of Iceland in order to tie up the Brit-
ish Home Fleet in the west. He recommends that our attack on the Ry-
bachi Peninsula be protected by air reconnaissance, submarines, light
naval forces, and by laying in advance a westerly mine field of the
type "Bantos A". Furthermore he advocates that during the landing,
in addition to plane attacks, the Army's 210 mm. coastal battery which
is now being Installed near Luenahamari should shell the enemy land
batteries.

The Commanding Admiral, Norway recommends that mine fields of either
type "Kajak" or "Kuesel VIII" be laid after the landing as the situa-
tion may require.

In the opinion of the Naval Staff such detailed prepa-
rations are premature since the project is still in
its preliminary planning stage at the Army High Com-
mand, Lapland. The matter will be reported to the
Chief, Naval Staff. »

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea :

The westward voyage of icebreaker SISU and the SCHLESIEN convoy is
proceeding according to plan. Engine trouble has again laid up the
icebreaker CASTOR which is in Copenhagen for repairs.

-57-

4 Mar. 1942 CONFIDENTIAL

See Telegram 1246 for the report from Naval Station, Baltic concerning
the alarm aboard the MONTE SARMIENTO (see War Diary 3 Mar. .

The Fleet Command estimates that after completion of repairs the
SCHARNHORST will require 6 weeks for training and trial runs. The Na-
val Staff is informed via Telegram 2020.

The Finnish General Staff advises that in view of snow and ice condi-
tions it is imperative to complete the occupation of the islands in
the Gulf of Finland by the end of March, and requests German agreement
or else information as to the time at which German authorities desire
the operation to be executed. (See Telegram 1155.)

Concerning the objections raised by the Naval Station, Baltic to the
use of Estonian vessels in Cellarius 1 group, the Admiral, Baltic
States expresses agreement with the opinion which the Naval Staff,
Operations Division has already forwarded to the Naval Staff, Quarter-
master Division. He points to a directive from the Fuehrer which pro-
vides that volunteer units are to be formed and administered by the
SS exclusively; in any case the Navy would certainly have tactical
coamand. It is planned to use 60 of the vessels for patrol and es-
cort purposes and 40 for transport and assault troop missions. A
prompt decision is necessary in view of the limited time available
for preparations.

The Naval Staff, Quartermaster Division must still
investigate the question of SS jurisdiction.

A study of possibilities for establishing a shipping route from the
Baltic Sea to the Black Sea via the Vistula, Bug, and Dnieper Rivers
reveals that such an undertaking is not necessarily impossible during
the spring thaws .

However, the Naval Staff, Quartermaster Division recommends that this
possibility not be utilized in view of the considerable risk entailed
in a transfer of PT boats and motor mine sweepers. The Navy is not
authorized to decide to what extent the Army should make use of this
opportunity to ship supplies.

V. Submarine Warfare

1. Enemy Situation ;

A submarine warning signal broadcast by the U.S. passenger
steamer YARMOUTH (5,043 GRT) reports that a submarine was sighted In
an area approximately 350 miles east of Cape Hatteras.

A newspaper report states that because of danger from submarines 4
Venezuelan tankers are tied up in St. Nicolas on Aruba.

Upon their arrival at a port in eastern Canada, survivors from 4 Al-
lied vessels reported that German submarines sank between 6 and 9
vessels of their convoy in the Middle Atlantic. 7 vessels were tor-
pedoed in the course of one night and 2 on the following morning. 5
submarines were located in the vicinity of the convoy.

•

-38-

4 Mar. 19^2 CONFIDENTIAL

Last week 1 Canadian steamer of 3,000 GRT was sunk in the South Atlan-
tic.

2. Own Situation :

U "587" reports strong naval and air patrols in the area be-
tween Cape Race and the Bank of Newfoundland. She believes she heard
2 torpedo hits on ships in the inner harbor of St. John's. Anti-sub-
marine defense measures made an accurate determination of success im-
possible.

•

On 21 Feb. U "67" sank an armed Norwegian steamer of the BRALANTA
class (9,600 GRT) in the Caribbean Sea.

For a supplementary situation report see War Diary, Part B, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity ;

Off Yarmouth our planes attacked a southbound convoy com-
prising 1 tanker, k steamers, and 1 destroyer. Strong defense mea-
sures prevented observation of effect.

Night raids against ships at sea were unsuccessful.

2. Mediterranean Theater :

Air raids on Malta were continued.

The raid on Alexandria took place under poor visibility conditions
and in pouring rain. Our planes attacked in two waves. The success
is considered only moderate.

3. Eastern Front;

East of Rybachi Peninsula armed reconnaissance planes at-
tacked and badly damaged one 1,000 GRT steamer and one patrol vessel.

An aerial torpedo attack on an 8,000 GRT steamer off Anapa was unsuc-
cessful.

No noteworthy reports are available as to air activities at the var-
ious Army sectors.

VII. Warfare _ in the Mediterranean

1. Enemy Situation :

Only few supply vessels were observed in the area between
Alexandria and Tobruk. At 1339 a British patrol vessel reported at-
tacking a submerged submarine, and half an hour later reported oil
rising to the surface.

-39-

4 Mar. 1942 CONFIDENTIAL

2 . Ovn Situation :

/
The 8 vessels comprising the 6th Motor Mine Sweeper Flotilla
will not be available fcr duty until lk Mar.; repairs were delayed be-
cause the shipyards were filled with submarines and it was difficult
to procure the necessary material.

In a letter of 25 Feb. the German Naval Command, Italy described to
what extent the development of the situation in the Mediterranean,
where conditions are at present considerably improved, is due to the
use of German planes and German submarines. It expressed the convic-
tion that prevailing conditions are most favorable for permanently
eliminating Malta, and that therefore the imminent all-out attack on
Malta must be concluded by an occupation of the island before the
situation changes again.

The Naval Staff feels that renewed consideration of this question,
which it evaluates exactly like the German Naval Command, Italy,
promises to be more successful if introduced by the Commanding General,
Armed Forces, South; the Naval Staff has already informed the Armed
Forces High Command repeatedly of the necessity of final elimination
of Malta, which is possible only by occupying the island. The devel-
opment of the fuel oil situation also indicates the advisability of
executing the operation soon.

The Naval Liaison Officer with the Armed Forces High Command is in-
structed at the same time, with reference to Admiral Riccardi's as-
sertion in Garmisch that the Italians have already made preparations
for the occupation of Malta, to ascertain how well the Armed Forces
High Command is informed regarding such Italian intentions and plans.

A copy of the related letter and telegram as per l/Skl Im 472/42 Gkdos.
Chefs, is in War Diary, Part C, Vol. XIV.

2. Situation Italy ;

See Telegram 0945 for Italian scruples concerning transport
of special combat weapons to the Black Sea over Croatian territory
due to danger of sabotage, and for a proposition for a transportation
route from Trieste to Vienna or Budapest.

The Naval Staff, Quartermaster Division and the Naval Staff, Subma-
rine Division will take over the matter.

4. Transport of Supplies to North Africa ;

4 naval barges and the steamer PETRARCA are en route to
Tripoli and Benghazi respectively.

5. Area Naval Group South ;

Aegean Sea ;

Supplies are moving according to schedule. A renewed gun-
fire attack by enemy submarine was made on a coastal motor sailing
vessel north of Skiatho with heavy casualties among passengers. Dur-
ing the night there was an enemy air attack on the air base Timbakion
near Kasteli.

■ 40-

k Mar. 19^2

CONFIDENTIAL

Black Sea:

E nemy Situation :

The Turkish steamer ADANA was attacked by sutmarines near
the Bosporus, but without success.

Nothing to report from radio monitoring or air reconnaissance.

Own Situation :

Nothing to report.

VIII. Situation East Asia

1 . Enemy Situation :

Reuter reports a radio message from Bandung to London con-
cerning renewed operations on Java. According to the message, the
Japanese, in spite of a Z>6 hour sea battle, have succeeded in bring-
ing 50 transports to the coast of Java and have landed at J> points.
15 transports are said to have been sunk or burnt, and 6 others to
have been damaged .

In the course of the sea battle the Japanese, according to this mes-
sage, lost 1 heavy cruiser; 2 cruisers were badly damaged, and 3 de-
stroyers which were on fire were abandoned. The Allied naval forces
far outnumbered the Japanese.

According to our radio monitoring it has been established without a
doubt that the Dutch flotilla leader TROMP entered an unknown port on
27 Feb. and that she left the same day, presumably for Sydney.

Considering this fact, the Japanese report on sinking
the TROMP should be investigated.

Radio monitoring reports a noteworthy increase in urgent operational
radiograms on k Mar. in the area of the Philippines and the Dutch
East Indies.

According to a report of the U.S. Navy Department, 1 Japanese bomber
tried to land on a U.S. aircraft carrier during a recent attack on
the carrier near the Gilbert Islands which led to the loss of from
13 to 18 Japanese planes. The bomber was shot down by anti-aircraft
fire.

2. Situation Japan :

The Domei report on the naval battle (see War Diary 3 Mar.)
is identical with the announcement from Japanese headquarters.

During the landing 1 Japanese transport was sunk and 2 others were
beached after they had discharged their troops.

-41-

4 Mar. 1942 CCI.TIDENTIAL

IX. Army Situation

1. Russian Front :

Southern Army Group :

Nothing new to report. Local enemy attacks vere unsuccess-
ful. Our attacks on the 6th Army front were ineffective due to enemy
pressure.

Central Army Group :

In the area around Yukhnov we withdrew, our front sectors.
The enemy followed cautiously. South of Vyazma heavy enemy pressure
restricted our activity. Northeast of Gzhatsk heavy enemy attacks
penetrated our lines, but were sealed off. At our defense position
northwest of Rzhev heavy attacks succeeded in penetrating our main
line of defense near the point of contact between 2 divisions. Coun-
termeasures are "being taken.

Northern Army Group :

Nothing new to report from the 16th and 18th Army sectors.

2. Finnish and Norwegian Front :
Nothing new to report.

3. North Africa :

Enemy situation unchanged. For a change in the disposition
of our forces see daily report.

♦♦******♦♦**********#*»**•

- 42 -

CONFIDENTIAL

5 Mar. 19^2

Items of Political Importance

France:

A diplomatic source reports that Admiral Darlan does not feel obliged
to retain a neutral position toward the U.S. any longer since the U.S.
has recognized De Gaulle's authority in New Caledonia.

Great Britain ;

In a radio broadcast on 3 Mar. Cripps repeated the familiar thesis
that the war will be decided by the amount of available reserves of
manpower and material, and not by land victories; the best equipped
nations with the largest populations are united in the alliance cf the
Anglo-Americans, Russians, and Chinese; the myth of Hitler's invinci-
bility was destroyed before Rostov and Moscow.

Air Minister Sinclair announced in the House of Commons that with the
start of the German spring offensive British air attacks are to con-
centrate on German defense plants. The attacks on Hamburg and Wil-
helmshaven have already considerably affected submarine construction.
The attacks on Paris have been aimed at armament works producing for
Germany, particularly Renault.

A self-sufficient naval air force was demanded during the debate,
among other things.

Eden attempted in the House of Commons to establish a common basis
with regard to Stalin's declaration, by saying that Great Britain's
war aim is to make it impossible for Germany to rearm, but to avoid an
economic collapse of Germany. He added that this goal cannot be at-
tained under the present German regime.

The development of the crisis in the British Government will depend on
the outcome of our eastern campaign, according to well-informed
sources. Until now the gravity of the situation has not been com-
pletely realized by the population in general. Should the Germans
actually succeed in reaching the western frontiers of India via the
Caucasus Mountains, thereby seriously threatening Britain's position
as a world power for the first time, it is quite possible that lead-
ing British conservative circles would feel that the only way to in-
sure the continued existence of the British Empire would be to make
peace by compromise. At that time, but not before, it might under
certain circumstances be possible that Britain would be ready to ne-
gotiate .

Argentina :

In a report from diplomatic circles there are renewed indications
that Great Britain, contrary to the U.S., does not favor a breach in
diplomatic relations between Argentina and the Axis powers, since she
fears that North America might gain decisive economic influence in
South America.

-4>

5 Mar. 1- £C_ _ TTIAL

Conference c.i the Situation vith ' he Chief, Naval Staff .

I. The Chief, Operations Division, Raval Staff reports on intentions
of Group North and the Commanding Admiral, Norvay with regarr to t
Rybachi Peninsula operation (see Var Diary H Mar.). The Chief, Naval
Staff permits the Rawal Staff to inform Group Worth anc the ~ :r; .= .-.: ing
adtairal, Norvay tha' extensive preparations at this early stage are not
necessar

Related telegram is in War Diary, Part C, Vol. Ila, "Flscherhal'cinsel"
(Rybachi Peninsula) files as per l/Skl I op 523/ h 2 Gkdos. Chefs.

II. The Chief, Naval Staff, Quartermaster Division reports on the in-
tended creation of a Sea Transport Office, Elack Sea. The Deputy Com-
manding Admiral, Group South is against such a step. The Chief, Raval
Staff agrees that the existing organization, vhich has been adequate up
to nov according to Group South, is to remain unchanged, and also agrees
that the Ravel Staff's intended temporary assignment of Captain von
Baumbach to the Admiral, Elack Sea should be carried out.

III. Concerning the reply of the Commander in Chief, Navy tc Afniral
Darlan vith regard to repair of the DUNKEFQUE, Ambassador Hitter has
written a personal letter to the Commander in Chief, Navy, by direction
of the Foreign Minister. For details see Var Diary, Part C, Vol. VIII.

Situation 5 Mar. 19^2

I. Var in Foreign Vaters

1. Enemy Situation :

North Atlantic :

The U.S. Var Department announces the arrival in northe.
Ireland of the biggest troop contingent that has been transported so
far.

South Atlantic :

The Nev York Times describes in detail the road that General
de Gaulle is supposed to build from Vest Africa to Egypt (Khartoum) In
order to relieve the vater routes tc the Near East.

According tc a French press report the Brazilian steamers BAGE and

:rTE JAVENU will leave Rio shortly vith 800 Axis nationals, most of
them families of diplomatic representatives.

Pacific Ocean :

The vaters of Nev Caledonia have been declared a mine danger
area. The U.S. intends to build a naval base in Salinas (Ecuador).

2. Qvn Situation :

Tanker GERMANIA left Santa Cruz (Tenerife) for Bordeaux on
^ Mar.. A submarine is to pick her up in quadrant CD J>6 some time af-
ter 13 Mar.

-U-

5 Mar. 19^2 CONFIDENTIAL

Ship "10" is informed of the DOGGERBANK's special mission "Kapstadt" by
Radiogram 1301; Radiogram 0647 informs her of the departure of the
CHARLOTTE SCHLIEMANN from Las Palmas, and of the intended departure of
ship "28" and the TARNENFELS from western France in mid -March and the
missions of the last 2 ships.

The 0S0RN0 is instructed concerning rendezvous with our submarine by
Radiogram 163k.

The Naval Staff has the impression that U.S. and British troop and sup-
ply transports in convoy pass Cape Town without stopping. Only ships
sailing alone enter Cape Town. The Naval Staff assumes that there is
heavy ship traffic near Cape Town without special patrols by planes or
naval forces, except in the case of convoys. Therefore the Naval Staff
feels that the chances for execution of mission "Kapstadt" continue to
be good.

Appropriate instructions are sent to the DOGGERBANK by Radiogram 1355.

Radiogram 2J52 gives the enemy situation report, including an account
of the attack on the German prize crew planned by the prisoners on the
prize ship PELAGOS by making use of the harpoon ammunition which had
not been secured.

II. Situation Vest Area

1. Enemy Situation ;

According to air reconnaissance there was a convoy consisting
of 20 steamers with 5 destroyers at noon southeast of the Isle of Wight
on an east course.

2. Own Situation ;

Atlantic Coast ;

Group West and the Commanding Admiral, Submarines are inform-
ed of instructions to the 0S0RN0 and orders for Group West to take over
command of the tanker GERMANIA beginning 1? Mar. at 0000, German stan-
dard time. Telegram 11^0 informs Group West of the departure on 6 Mar.
of steamer DREPANUM from Ferrol to Bilbao to await further instructions.

Channel Coast ;

Mine assignment; A dummy barrage is to be laid during the
night of 6 Mar. in order to secure the coastal route in the English
Channel.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation ;

According to radio monitoring in the morning a convoy was lo-
cated east of Moray Firth, and a convoy coming from North Minch entered

-^5-

5 Mar. 19*2 CONFIDENTIAL

Pentland Firth. Strength of the convoys has not been determined. Air
reconnaissance located a convoy, consisting of 16 steamers, 2 destroy-
ers, and 1 cruiser, on a north course east of Newcastle.

Own Situation ;

The steamer ROBERT SAUBER was grounded near Heligoland and
the pilot boat RUESTRINGEN was grounded at Langeroog while helping
in the rescue of the stranded patrol vessel "2001 n . The crew was lost.

Convoy missions as planned. The first group of troop transports is sup-
posed to leave Heligoland bound for Kristiansand South this evening
with northern convoy 820.

2. Norway ;

Enemy Situation :

The 5th Air Force concludes from the fact that 15 steamers
were in Iokanga harbor at noon on 4 Mar. that convoys put in there and
then the ships sail one at a time to Murmansk at night. Other indica-
tions of the growing importance of Iokanga are as follows: An airstrip
for fighters has been built 8 km. southwest of the town on a frozen
lake; a new telephone line has been strung along the coast toward the
west.

On 5 Mar. at 1505 air reconnaissance spotted 70 miles south of Jan
Mayen a convoy of 15 steamers of between 5,000 and 10,000 GET with 1
cruiser, 2 destroyers, and 2 other escort vessels on a 30° course and
with a speed of 6 knots.

At 1238 air reconnaissance further spotted at 11° 30' W, 68° 40' If
(approximately 160 miles northeast of Iceland) 3 steamers which when
approached seemed to be on a deceptive course.

Own Situation :

The Admiral, Arctic Ocean has sent 4 submarines to quadrants
AB 4650, 4930, 5770, and 8150 (west of Bear Island) to attack the con-
voy south of Jan Mayen, and has asked permission to use U "377" and
"403" from Narvik. Permission was granted (see Telegram 2230).

Group North reports that the group of the Commanding Admiral, Battle-
ships will be ready for action on three hours' notice beginning 6 Mar.
at 0900.

In a long distance conversation between the Commanding Admiral, Group
North, and the Chief of Staff, Naval Staff, the question of using naval
forces to attack the convoy was discussed and the general procedure was
decided on .

V

Because of a broken connection no telegraphic reports have been received
up to 1700 from the Admirals, Arctic Ocean and Arctic Coast.

An anti-submarine training group with U "17" and 3 training submarines
has arrived at Trondhelm. U "405" has passed Grip on her way to Trond-
heim.

Safety measures for Norway :

1. The Conmanding Admiral, Norway is supporting the request

-46-

5 Mar. 19^2 CONFIDENTIAL

of the Admiral, Arctic Coast to lay 2 row mine barrages In the Vast
Fjord between Skraaven and Flatoey to secure the sea area at Narvik.

For a copy of the request with details as per l/Skl 5287/^2 Gkdos. see
War Diary, Part C, Vol. Ha.

2. The Naval Staff has received word of the position of the
Commanding Admiral, Battleships taken in reference to suggestions of
the Commanding Admiral, Norway in the matter of air security for the
Aasen Fjord.

For oopy see War Diary, Part C, Vol. Ila, as per l/Skl 5270/42 Okdos.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation ;

On 2 Mar. a Finnish patrol tried to land near Lapinlathe on
Hogland, but was repulsed by Russian machine gun and machine pistol
fire. At Lavansaari all batteries opened anti-aircraft fire on a Fin-
nish plane. Nothing moving on Peninsaari. There was machine gun fire
from the eastern edge of the village Tytaersaari. For details see Tele-
gram 1510.

2. Own Situation ;

Ice conditions in the Baltic Sea entrances and in the south-
ern Baltic Sea are making transport movements difficult. The SCHLESIEN
convoy is en route from Swinemuende to Kiel (Hamburg). The icebreaker
EISBAER with the tanker PR0CY0N is icebound south of Drogden. At least
2k hours are necessary to repair the CASTOR.

On request of the Naval Attache in Stockholm, Group North has been in-
structed by the Naval Staff to locate the Swedish trawlers MALS IBS and
GG 294 which are lost in the ice, and if necessary to help them out.
(See Telegram 1919.)

Group North is fully supporting the request of the Admiral, Baltic
States concerning Estonian vessels for the group commanded by Cellarius.
The formation of the flotillas is deemed necessary (see Telegram 0805).

V. Merchant Shipping ;

In repeating its petition of 12 Aug. 19^1, which the Navy has satisfied
only with regard to improving the personnel situation of the German mer-
chant marine to a small extent, the Ministry of Transportation requests
support for merchant shipping in the following points;

1. Return of the merchant ships confiscated by the Naval High
Command.

In view of the -urgent needs of the Navy, the Naval Staff, Quartermaster
Division can go no farther than to agree to undertake further confisca-
tions only if necessary to the outcome of the war.

-47-

5 Mar. 1942 CONFIDENTIAL

2. Completion of merchant ship construction In German shipyards
which has been shut down.

The Naval Staff, Quartermaster Division takes the position that new
ships particularly adapted to the Navy must be finished In German ship-
yards and that In exchange for these new ships the confiscated tonnage
can be released to the merchant marine.

The Naval Construction Division is asked to pay particular attention to
this question, all the more since the Transportation Minister wants to
get the Fuehrer to decide on this particular point.

3. Provision of a German shipyard for the purpose of construct-
ing standard merchant ships with mas3 production techniques.

The Naval Construction Division is asked to state an opinion on this
question after renewed examination.

4. Increase of the quotas of raw materials.

This question also must be examined by the Naval Construction Division.

The Naval Staff, Quartermaster Division intends to submit to the Com-
mander in Chief, Navy for approval the decision of the Navy with re-
spect to the petition of the Transportation Minister, in order to help
the merchant marine as much as possible in their endeavor to eliminate
the tonnage shortage.

The Naval Staff, Operations Division is in complete agreement with the
Naval Staff, Quartermaster Division.

VI. Submarine Warfare

1. Enemy Situation :

According to air reconnaissance, a steamer was torpedoed in
the Freetown area at 14° 09' W. Name and latitude unknown. A British
patrol vessel reported a submerged submarine 70 miles from Cape Mount
(south of Freetown). According to a press report the steamer JOHN
ERICSSON was sunk in the South Atlantic due to enemy action.

2. Own Situation :

A large transport with destroyers was sighted by U "213" on
an east course 60 miles north of Rockall Bank. Contact could not be
maintained because of rough sea. Contact with a steamer 200 miles
southeast of Great Newfoundland Bank was lost due to fog. U "504" sank
a gasoline tanker of 7,000 GRT on 26 Feb. off the coast of Florida. The
same boat unsuccessfully fired a torpedo fan at a steamer of 4,000 GRT,
probably a decoy ship. A submarine sighted 4 destroyers proceeding at
high speed on a west course in the Mediterranean Sea northeast of Ras
Azzaz.

Supplementary situation report is in War Diary, Part B, Vol. IV.

-48-

5 Mar. 19^2 CONFIDENTIAL

VII. Aerial Warfare

1. British Isles and Vicinity ;

Fighter bombers successfully attacked houses and barracks in
Selsey Bill. During a night bombing attack a steamer was sunk north of
St. David's Head.

2. Mediterranean Theater ;

Airfields and submarine bases on Malta were again under at-
tack.

3. Eastern Front ;

Strong operations by our Air Force in front of the central
army front. Bad weather prevented operations in the south. Air recon-
naissance over the Black Sea. For results see Enemy Situation, Warfare
in the Mediterranean. For results of reconnaissance in the Arctic
Ocean and the Norwegian Sea see Enemy Situation, Norway.

VIII. Warfare in the Mediterranean

1. Enemy Situation;

Only a small amount of convoy traffic was reported in the
Alexandria-Marsa Matruh area. Submarines were reported near Corfu,
Lampedusa, and Cephalonia.

2. Own Situation ;

The 3rd PT Boat Flotilla plans a reconnaissance operation
with 5 vessels in the Straits of Sicily for the night of 5 Mar.. 2
vessels of the 3rd PT Boat Flotilla departed at 0400 to reconnoiter
Pantelleria.

In accordance with the decision of the Chief, Naval Staff, the Naval
Staff released an explicit directive to the German Naval Command, Italy
concerning operations of the 3rd PT Boat Flotilla in the area of Tobruk,
with Suda as a base and rest port and Derna as the port of operations.
Copies were sent to Group South and the Commanding Admiral, Aegean Sea.
Directive as per l/Skl I op h6kh/k2 Gkdos. in War Diary, Part C, Vol.
XIV.

3. Situation Italy ;

During the night of k Mar. there were enemy air attacks on
Benghazi, causing minor damage. The steamer CUMA which was severely
damaged during the night of 2 Mar. sank in port after additional inner
explosions. As a result of the explosions on the CUMA, the tanker
TRICOLARE, the steamer SECURITAS, and a ferry boat sank, a torpedo boat
and a destroyer were severely damaged, and 2 merchant ships were some-
what damaged. Furthermore, numerous civilian buildings and harbor in-
stallations were damaged.

-^9-

5 Mar. 1942 CONFIDENTIAL

4. Transport of Supplies to North Africa ;

The 3rd transport group, including the steamer WACHTFELS, has
transported the following quantities to Tripoli, according to an Ital-
ian report: 441 men; 768 vehicles (including tanks); 19,946 tons of
armed forces supplies; 16,850 tons of fuel; 1,893 tons of coal; and
756 bags of military mail.

The steamer MARINE SANUDO left Trapani for Tripoli the evening of 4 Mar.
and is proceeding on the western route.

The 4th transport group is being prepared.

The German Naval Command, Italy reported on 24 Feb. that the volume of
supplies reaching Africa is limited not by the amount of shipping space
but by the lack of escort forces and fuel, and by the limited capacity
of the African ports. The Naval Staff asks the German Naval Command,
Italy to confirm the fact that in reality the capacity of the African
ports is the only factor which limits the volume of supplies, since with
the present favorable situation at sea it is possible "to ship the
cargo with fewer escort vessels. A report is also requested on the pos-
sibility of using for supplies to Africa temporarily unused tonnage
provided for moving supplies to Greece or to the Aegean Sea. (See Tele-
gram 1616. )

5. Area Naval Group South ;
Aegean Sea ;

Nothing to report of situation at sea.

The German Naval Command, Italy informs Group South concerning a recom-
mendation made by the Italian Navy to transfer the transports for Greece
to Bari and Brindlsi if possible, and to take better advantage of the
railroad route Trieste-Bari-Brindisi, due to the difficulty of safe-
guarding the Adriatic Sea. (See Telegram 0925.)

Black Sea :

Enemy Situation :

A Turkish auxiliary sailing vessel reports on 4 Mar. that a
Russian submarine escorted her at a distance, without attacking, from
Igneada to the vicinity of the Bosporus.

Air reconnaissance reports a battleship, 4 destroyers, 17 steamers, 2
tankers, and 35 medium and small vessels in Novorossisk. The port of
Kerch is free from ice. 1 large tanker and 6 small vessels were In
port.

According to information from a prisoner, the Black Sea submarine flo-
tilla has carried out operations against Varna, Constanta, Burgas,
Sulina, and the Bosporus during the last 6 months. The leader of the
flotilla is a British captain, former commander of submarines in the
Mediterranean Sea. On each vessel there is a British adviser. 2 ves-
sels are constantly deployed off the Bosporus. In a line to the north
there are about 3 vessels, and north of It there are cruisers and de-
stroyers. Their mission was, next to reconnoiterlng and destroying
Axis shipping, to prevent a break-through of Italian torpedo boats into
the Black Sea which is said to have been expected. The prisoner, an

-50-

5 Mar. 19^2 CONFIDENTIAL

intelligence officer of the Black Sea Fleet, thinks that this deployment
is still in force.

Own Situation ;

The Deputy Commanding Admiral, Group South has expressed
scruples as to the advisability of creating the post of Commanding Of-
ficer, Supply and Transports, Black Sea. (Cf . Conference on the Situa-
tion with the Chief, Naval Staff.) For copy of corresponding telegram
as per l/Skl 5290/42 Gkdos. see War Diary, Part C, Vol. XIV.

IX. Situation East Asia ;

According to press reports, the capture of Batavia is imminent.

X. Army Situation

1. Russian Front ;

Southern Army Group ;

Minor activity on the Crimean peninsula and at the Von Kleist
Army Group. At the 6th Army sector north of Losovaya there were more
determined but unsuccessful enemy attacks.

Central Army Group ;

In the area between Byelev and Lldinovo very vigorous and
strong enemy attacks were successfully repulsed by our troops. F.eneved
powerful attacks were made on our flank position west of Medyn and were
repulsed. In repeated attacks with very powerful forces on a wide
front, the enemy succeeded in penetrating north of Gzhatsk. This situa-
tion is now being corrected. In the Vyazma area there is vigorous par-
tisan activity as well as engagements with regular troops. Our forces
reduced further the pocket south of Vyazma. Northwest of Rzhev the
enemy succeeded in winning ground in spite of very determined resistance.
Heavy enemy pressure is being applied from the area northeast of Byelci
with the obvious intention of encircling our forces north of Byeloi
(XXIII Army Corps), by attacks from the north, south, and west.

Northern Army Group ;

In general the situation is unchanged.

2. Finnish and Norwegian Front ;

On the Karelian front artillery and patrol activity. At the
sector of the Mountain Corps, Norway an enemy landing attempt northeast
of Titovka on the Gulf of Motovski with two platoons was repulsed by
our artillery.

5, North Africa ;

Nothing new to report.

**********»*#*♦*♦**#*#*♦♦

-51-

far. I9A2

Iter.; cf Political Importance

;e:

ernnent denies emphatically that negotiations are taking place
betveer. Fr - and Japan regarding Madagascar.

:assador to Washington has made a formal protest against the
de tion cf the U.S. vith regard to the Pacific Islands under le
Gaulle's authority.

According to a United Press report, the Ministry of the Interior has
published for the first time a list of 230 acts of sabotage committed
against German occupation troops from June 19^1 to February 1942. Only
1C3 of these vere mere or less solved.

Great Britain :

- government stated in the House of Commons that its position regard-
ing the prohibition of the communist "Daily Worker" remains unchanged.
According to a report from a diplomatic source, the Australian and
Motherlands troops on limor did not resist the Japanese.

India :

According to Eritish press reports, a national Indian government vith
all the rights of a dominion government is supposed to be formed vithin
a short time. All groups of the population are to be represented. Up
to the present time the Mohammedans have not given their approval.

In a proclamation, Ifehru assured the Chinese people of India's varmest
sympathy for then. He 3aid that the Indian people vill not be influ-
enced by Axis propaganda.

Vatican ?ity ;

By denying an alleged letter from Stalin to the Pope, the Vatican de-
stroyed the story that Bolshevism has changed its anti-clerical and

anti-religious position.

■

Thailand :

In spite of mutual protestations, Siamese- Japanese relations actually
have become somevhat less cordial; the Siamese are disappointed in the
fact that the Japanese are abusing the permission to march through t'r.e
country by permanently occupying important points, and Thailand's inde-
pendence has been lost in the process.

Conference on the Situation vith the Chief, Naval Staff .

I. 7r.e Commanding Admiral, Submarines vants to keep the sea area
Aruba- Trinidad occupied vith submarines under all circumstances. Only
boats of Type IXC can be considered because of their range. U "15*" is
scheduled to leave vestern France very soon. Other submarines are ex-
pected to be sent to this area after 20 Mar.

-52-

6 Mar. 19^2 CONFIDENTIAL

The Chief, Naval Staff considers constant occupation of the area most
important .

II. The Naval High Command, Ordnance Division reports on the effective-
ness of the bomb hit on the GNEISENAU, with special reference to the
powder of turret A. The powder has satisfied all demands that could
possibly be made; fortunately for the ship and her vicinity it did not
explode all at once, but burned itself out, with successive explosions
of separate cartridges. It is the opinion of the Naval High Command,
Ordnance Division that the upper deck was split open by a subsequent
flare-up of the remaining powder which had been incompletely burned,
and not by a second bomb hit.

It is to be decided whether this opportunity should be used to change
the vessel's armament to J>Q cm. caliber.

According to a report of the Chief, Ship Construction Division, the
GNEISENAU will undock on 1? Mar., and the SCHARNHORST will take her
place.

III. The Chief, Operations Division, Naval Staff reports on the inten-
tion of Group North to use submarines and possibly forces of the Com-
manding Admiral, Battleships in operations against the reported PQ con-
voy.

The Commanding Admiral, Group North has asked for a decision on whether
the operation as discussed by telephone with the Chief of Staff, Naval
Staff is to be executed, and whether or not the SCHEER and the Command-
ing Admiral r Battleships are to take part.

The Fuehrer's permission is requested by telephone via Captain von Putt-
kamer. The Fuehrer is in complete agreement.

Therefore, Group North is advised as follows: Operation is to be car-
ried out without the SCHEER but with the Commanding Admiral, Battle-
ships .

IV. The Naval S>taff sends Group North its opinion, as approved by the
Chief, Naval Staff; on the question of operations of our naval forces
In the northern area, in order to adjust the 2 viewpoints and to pro-
vide a stimulus to further plans for operations.

For a copy as per l/Skl I op 535/^2 Gkdos. Chefs, see War Diary, Part
C, Vol. Ha.

V. Group West reports that according to a Fuehrer directive forwarded
by the Commanding General, Armed Forces, West, which is based on an in-
crease in reports, an enemy attack on the occupied western area can
well be expected in the near future. The Fuehrer has ordered that all
commands be on the alert, and that all orders pertaining to such a case
be re-examined.

VI. At the next conference with the Chief, Naval Staff the Fuehrer
wants the Naval Staff's opinion on probable developments In case a
large-scale eneny landing should take place in the northern area.

Special Items :

I. Regarding transfer of the HIPPER to Norway : The Fleet Command re

-53-

6 Mar. 1942 CONFIDENTIAL

ports that the necessary training requirements for transfer of the AD-
MIRAL HIPPER to the northern area cannot be fulfilled at this time.-

The Naval Staff is of the opinion that the transfer can
be made despite the lack of proper training, and the ne-
cessary training can be completed in Trondheim.

At the same time Group North reports the intention to transfer the HIP-
PER to Trondheim after 12 Mar.. An escort is to be supplied by de-
stroyers "26" and "30", and the 2nd and 3rd Torpedo Boat Flotillas.
The cover name is "Eisenbahn".

The plan is to have the ship leave from the Jade or the Elbe, escorted
by a mine-exploding vessel as far as quadrant AN 9546. Arrive there at
2200, proceed to Hanstholm at 28 knots. The cruiser will spend the day
in the Skagerrak, supplying the destroyers with fuel en route. Torpedo
boats are to refuel at Kristiansand South. At 2200, proceed at 29
knots to Bredsund Deep, and from there 2 days after departure at approx-
imately 1200 proceed along the coastal inter-island route to Trondheim.
The TIRPITZ and the SCHEER with 2 destroyers and 2 torpedo boats will
be transferred to Trondheims Leden to receive her.

The Group asks the Naval Staff to obtain adequate fighter cover as
planned from the Operations Staff of the Commander in Chief, Air, if
possible under the same command all the way from the home base to Trond-
heim.

Subsequently Group North asks that it be arranged with the Operations
Staff of the Commander in Chief, Air to provide long-range fighters for
the sector from 62° N to Kristiansund North, since fighters do not have
sufficient range.

In the opinion of the Naval Staff the plan of Group North
needs some changes. A conference with the Chief, Naval
Staff is planned for 9 Mar.

II. A survey annexed to the War Diary of 16 to 31 Dec. 1941 of the Com-
manding Admiral, Defenses, West gives a clear and complete picture of
the courageous, important and devoted acltivity of the forces of the
Commanding Admiral, Defenses, West in escort, mine, and defense duties.
The survey covers the whole year of 1941.

III. Group North, the Commanding Admiral, Norway, and the Admiral,
Arctic Ocean have objections to the plan as initiated by the Naval
Staff for mine laying along the northern route in order to harass the
supply lines to Russia. Due to a detailed explanation of the Naval
Staff's position which the Chief, Naval Staff telephoned to him, the
Commanding Admiral, Group North agreed to have the question re-examined.

For a copy of this explanation as per l/Skl I E 4962/42 Gkdos. see War
Diary, Part C, Vol. VI.

IV. The following assertions have been brought to the attention of the
Fuehrer's adjutant, Captain von Puttkamer: The Swedish Naval Attache
has declared, with reference to a letter of the Swedish King to the
Fuehrer, that neither passage of British troops through Swedish terri-
tory nor a British occupation will be tolerated. The assistant to the
Japanese Naval Attache has declared that as far as he knows the Japa-
nese consider Madagascar only as a submarine base and not as a base for
surface forces. For details see War Diary, Part C, Vol. VIII.

-54-

6 Mar. 19^2 CONFIDENTIAL

Under these circumstances, the question of whether Madagascar might al-
so he used as a base for German submarines should be re-examined, in the
opinion of the Naval Staff.

Situation 6 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation :

Reports intercepted up to 4 May 1942 by radio deciphering and
radio monitoring are compiled in the radio intelligence reports of the
Naval Communications Division, Naval Staff Report No. 9/42.

South Atlantic ;

According to an intelligence report, the Scotch troops that
landed in Freetown are again at sea. Transports departed for the east
on 1 or 2 Mar.

2. Own Situation ;

The DOOQERBANK is informed of an enemy convoy in the South
Atlantic by Radiogram 1023.

Radiogram 19^7 instructs ship "10" that when she meets the REGENSBURG
she should obtain the new regulations for exchange of recognition sig-
nals between German steamers and the Japanese, in order to be able to
equip any prize ships which may be sent to Japan.

Radiograms 0524, 2053, and 1753 informed all ships in foreign waters re-
garding the political significance of the change in Japanese ambassadors
in Moscow, and regarding enemy reports and promotions of flag officers.

II. Situation West Area

Channel Coast:

The dummy barrage mission near the Channel Islands was carried out
successfully during the night of 5 Mar.

Nothing else to report.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

The steamer LAHNECK sank due to a collision. The crew was
rescued.

Northern convoy 820, consisting of 2 troop transports, 1 escort vessel

-55-

6 Mar. 1942 ooiF:r?::;r:^L

without cargo, and 2 experimental vessels, is en route from Hamburg to
Kristiansand South with 5 patrol vessels.

Attempts to salvage and to rescue the steamer SAUEER and the oilot ves-
sel ESTRMGEH are being continued. Patrol vessel "2001" has been
an up for lost. Patrol vessel P I211" Is icebound.

2. Norway :

Enemy Situation ;

Air reconnaissance reports having spotted a westbound destroy-
er at 1600, 27C miles southwest of the Lofoten Islands. The PQ convoy
that was reported on 5 Mar. was not located.

Own Situation :

The weather report of 0800 for the sea area around northern
Scandinavia reports north to northwest winds of 5 to 6, partly cloudy,
snow flurries, 20 miles visibility outside the snow flurries."

Patrol tasks and sweeping of the channels were interrupted because of
weather conditions.

The COBRA laid the mine barrage near Harstad on 5 Mar. as planned.

Enemy air activity over Petsamo, Vardoe, and Trondheim on 4 and 5 Mar..
Minor damage and some losses were sustained in Petsamo.

U "405" has arrived at Trondheim.

On 5 Mar. the 5t. le Sweeper Flotilla with 8 vessels put out
from Bergen for the north. On 6 Mar. the 5th Mine Sweeper Flotilla
with 3 vessels and the ULM also left Bergen for the north.

The Commanding Admiral, Norway requests permission to lay an additional
anti-submarine barrage off Nordkyn. For copy of request as per l/Skl
5366/42 Gkdos. see War Diary, Part C, Vol. Ila.

Operation of Commanding Admiral, Battleships against enemy PQ convoy .
Group North's iustruc.l-._- .- . al, Battleships and

the 5th Air Force include among other things an order to seek out, at-
tack, and destroy the enemy convoy. Provision should be made for using
torpedoes. A copy of the instructions was sent to the Naval Staff.

The Commanding Admiral, Battleships left Trondheim at 1200 aboard the
TIRPITZ with 5 destroyers and 2 torpedo boats. After the area near Fro
Havet, where there is danger of submarines, has been passed, 2 of the
destroyers and the torpedo boats are to be released.

Tbe vessels will probably contact the convoy on 7 Mar. at 1600 in quad-
rant AB 59^0.

Engagements with superior enemy forces are to be avoided, but if the
enemy is of equal strength he is to be engaged if this is necessary to
destroy the convoy. Any enemy forces of inferior strength are to be de-
stroyed without regard for the convoy.

After the mission has been fulfilled the vessels are to return to
Trondheim.

-56-

6 Mar. 19^2 CONFIDENTIAL

5 of our submarines are operating east of 26° E.

Narvik is the alternative port, with limited facilities for refueling.
It is recommended that the TIRPITZ refuel the destroyers during the
first night.

Communications procedure as in operation "Sportpalast".

The operation has begun as planned. On the suggestion of the Naval
Staff, Group North took over command of all submarines in the area of
northern Norway at 1531. 2 submarines were deployed in a reconnais-
sance line east of 27° E, and 2 west of 3° E.

The Commanding Admiral, Submarines is of the opinion that on 8 Mar. at
0400 the convoy will already have passed the submarine position which
has been ordered, and he recommends that the position be shifted to the
east in order to contact the convoy in the daytime.

At 1818 Commanding Admiral, Submarines sent a radiogram to this effect
to the Admiral, Arctic Ocean.

The Air Force reports having attacked a submerging submarine which did
not return recognition signals at 1529 off the southern point of
Moskenaesoe (in the Vest Fjord). It is feared that the submarine might
be_U "377" which has just left Narvik. The submarine was reported at
1150 by the coast guard station at Mykoerne, having been tentatively
identified as a destroyer.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ;

Icebreaker activity with nothing in particular to report.

In order to accelerate the preparation and disposition of the 2 groups
of 60 and 40 Estonian vessels which are to be formed according to the
sugge tions of the Admiral, Baltic States, Naval Station, Baltic now
suggests that 40 vessels with Estonian crews (which are to be drafted
into the Armed Forces) be provided to reinforce the Coastal Patrol
Group, Baltic States, and that ^0 vessels be made available for assault
troop missions of the group commanded by Lt. Comdr. Cellarius. They
are not to be organized into a regular naval unit, however.

The Naval Staff, Quartermaster Division will arrange further details.

According to a directive of the High Command, Air, Operations Staff,
the Commanding General, Air Force Group Command, Central Area is to
turn over to the Navy 2 anti-aircraft radar instruments ( "Wuerzburg
T.C. Geraete") on 15 Mar., and 2 more on 1 Apr. for the defense of Kiel
against air raids.

V. Submarine Warfare

1. Enemy Situation ;

According to an Italian report the British tanker ROSEWOOD
(5,989 GRT) left Ponta Delgada on 2 Mar. for Central America. Radio

-57-

6 Mar. 19*2 :-TIAL

monitoring intercepted a request for help from an unidentified steamer
in 19° 10 ■ H and 21° 15' V (250 miles northeast of e Verdes):

ubmarine warning was given for the area 75 miles east of the Bahamas.
According to radio monitoring the [ tor vessel I (9,246
GRT) was unsuccessfully attacked by a submarine 180 miles northwest of

tba.

2. Own Situation ;

Submarines report that they sank the
(5,112 GRT) off Halifax and the steamer O.A. KHUDSEH (11,007 GRT) east
of the Bahamas.

A supplementary situation report is to be found in War liary, Part B,
Vol. IV.

Although some of the Germs. 8 Mediterranean were only

out e. ef missions it is noticeable 9 number of boats which
are laid up for repairs at the"ir respective bases has lately been far
greater than the number of those in the operations zone. In order to
remedy this situation the Naval Staff requests the Commander of Subma-
rines, Italy to submit in detail his opinion as to the factors respon-
sible for delaying submarine repairs. ies of this request are being
forwarded to the German Naval Command, Italy and the Commanding Admiral,
Submarines.

A copy of the above request as per l/Skl I u 5233/^2 Gkdos. may be

found in War Diary, Part C, Vol. T

VI. Aerial Warfare

1. British Isles and Vicinity :

During the night of 5 Mar. Portland was atta is alterna-
tive target. See Situation Norway for details concerning the extent to
which the 5th Air Force is to partlcipat the operation against con-
voy PQ 12, and for the report about an attack on a submerged submarine
in the Vest Fjord.

2. Mediterranean Theater ;

16 Ju 38 's successfully attacked the submarine base at Val-
letta. 3 sunk submarines were spotted after the attack; this observa-
tion must be confirmed by photographic reconnaissance. In the attacks
on Malta it is noticeable that the anti-aircraft defenses have become
weaker, possibly because the enemy is trying to save ammunition. In

-rast to former observation .e enemy fighters are very aggre
2 enemy destroyers were unsuccessfully attacked north of Ras Azzaz.
Bombers, dive bombers, and fighters attacked enemy troop concentrations,
camps, and motor vehicles in Cyrenaica with good effect.

3. Eastern Front :

The area west of Rzhev was focal point of attack in the
Central Army Group sector. German forces near Kholm and Demyansk and
southwest of Pola were supplied by air. Minor raids were flown against
Sevastopol and Moscow.

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6 Mar. 1942 CONFIDENTIAL

VII. Warfare In the Mediterranean

1. Enemy Situation ;

The Polish steamer SOBIESKI put out from Gibraltar on 5 Mar.
with 400 civilians and 800 men on leave aboard. According to a Spanish
report task force H, with the MALAYA, the EAGLE, the ARGUS, a cruiser
of the DIDO class, and 6 destroyers has left Gibraltar, presumably on
an east course. The enemy was not sighted in the central Mediterranean.
In the eastern Mediterranean German planes located a westbound force of

4 destroyers off Ras Azzaz. A convoy of 2 merchant ships escorted by
2 light cruisers and 4 destroyers was off Alexandria making for port.

A cruiser and 2 auxiliary cruisers were sighted at noon directly off the
harbor on a north course.

According to the Italians, the reports that have been coming in for
months about the presence in Gibraltar of steamers provided with land-
ing equipment do not necessarily justify the suspicion that a landing
operation is pending in the Mediterranean or in West Africa. Rather
they suppose that the rafts which have been observed on many steamers
are merely life rafts or are meant to be used to facilitate unloading
the ships .

2. Own Situation :

The 3rd PT Boat Flotilla put in at Porto Empedocle at 1000.
The enemy was not sighted. One of the boats is laid up because- she
scraped bottom south-southeast of Cape Bon.

3» Situation Italy ;

Enemy planes attacked Tripoli and Benghazi during the night
of 5 Mar.. A considerable number of buildings in Benghazi were damaged.

4. Transport of Supplies to North Africa ;

The steamer PETRARCA did not enter Benghazi and the steamer
B0LSENA did not leave that port due to danger of magnetic mines. On

5 Mar. the steamer MARIN SANUD0 was sunk by an enen-y submarine while
sailing to Tripoli on the western route.

5. Area Naval Group South ;
Aegean Sea ;

Nothing to report.

Black Sea ;

Enemy Situation ;

No change.

Own Situation ;

A delayed report of 5 Mar. concerns enemy landing attempts at
night southwest of Yalta, which were repulsed. 2 gunboats, several
transports, and what was evidently a submarine were observed during the
action.

-59-

6 Mar. 19^2 CONFIDENTIAL

VIII. Situation East Asia :

No reports in particular have been received.

A report vas received from the Naval Attache in Tokyo concerning in-
spection of a small Japanese submarine. Copy of report as per l/Skl
5371/42 Gkdos. in War Diary, Part C, Vol. XV.

IX. Army Situation

1 . Russian Front :

i ■ 4

Southern Army Group ;

At Sevastopol the enemy resumed local attacks, but vithout
success. The enemy also launched attacks in some sectors of the Von
Kleist Army Group vithout success. Attacks on the outermost western
flank of the 6th Army vere repulsed; the enemy suffered heavy losses
in some places. Our countermeasures shattered enemy attacks in the
Livny area, in part even vhile they were still in preparation.

Central Army Group ;

Encounters near Vesniny and Sukhinichi; the enemy incurred
losses. Enemy forces with air support attacked the eastern and south-
ern flanks of the ^th Army. The attacks were without result. Our
armored forces cleared the highway between Demyanskoe and Yukhnov of
enemy troops. The pocket south of Vyazma was drawn tighter. We were
able to close off an enemy penetration northeast of Gzhatsk. Stubborn
enemy attacks against the flank farthest left of the division northwest
of Rzhev. Vest of Mostovaya our forces had to be withdrawn. Fierce
fighting in Byeloi.

Northern Army Group;

Southwest of Kholm a fierce battle is in progress; the enemy
is putting up a stubborn defense. Enemy troop concentrations have been
located in the valleys of the Polomyet and the Pola Rivers. All attacks
southwest of Staraya Russa between Lake Ilmen and Leningrad were re-
pulsed .

2. Finnish and Norwegian Front ;

Enemy attacks north of Povyenets were repulsed. The Command-
ing General, Lapland reports heavy ship traffic along the Murmansk
coast.

3. North Africa ;

One De Gaulle division moved up to Bir Hakheim. The day was
quiet.

*****«****«******-»*****•*

-6o-

CONFIDENTIAL

7 Mar. 1942

Items of Political Importance

U.S.A. :

According to a report of the French Ambassador in Washington to his
government, dated 16 Feb., the economic orientation of the U.S.A. is
dominated by three decisions made by Roosevelt:

1. 60,000 planes are to be produced in 1942
125,000 planes are to be produced in 1943

45,000 tanks are to be produced in 1942

75,000 tanks are to be produced in 194?

20,000 anti-aircraft guns in 1942

35,000 anti-aircraft guns in 1943

8,000,000 GRT of shipping in 1942

10,000,000 GRT of shipping in 1943

2. Roosevelt's budgetary recommendation for $95,000,000,000 for
1942/43.

3. War production is to be centrally administered under the di-
rection or Donald Nelson.

Almost 41,000,000 persons are now employed, which is an increase of
about 2,800,000 over December 1941.

1,100 ships of 6,800,000 GRT were under construction on 1 Jan. 1942.
Theoretically it is possible to build the new 10,500 GRT "Liberty"
freighters in 105 days.

France:

Boti, the newly appointed Italian Ambassador to Vichy, took over Jiis
office on 5 Mar.

Great Britain :

The new Production Minister, Lyttleton, made the following statements on
his return from Cairo: The British are now in a much better position
to defend Egypt than at the beginning of the Libyan campaign. Shipments
of U.S. personnel and -materiel have been of great assistance in the de-
fense of the Middle East.

The Russian successes have postponed a threat to the northern sector of
the Middle Eastern theater of war for a long time. The capacity of the
Iran railroad has tripled. The U.S. air base at Massaua is to be en-
larged on an enormous scale.

India:

According to the Transocean News Service, differences of opinion are
supposed to have arisen between Churchill and Cripps with regard to the
solution of the Indian problem, so that the government declaration con-
cerning India had to be postponed. Churchill refuses to permit full
autonomy.

U.S.S.R. :.

A report from a neutral diplomatic source states that the food situation

- 61 -

7 Mar. 19^2 CONFIDENTIAL

in Kuibyshev is becoming worse from day to day. A great number of per-
sons who are said to be responsible are being executed after trial by-
special courts. Since the crops sown in the fall have proved to be
utterly insufficient, a real famine and the outbreak of epidemics may
be expected.

So far official circles in Moscow have been absolutely silent concerning
the appointment of Sato, the new Japanese Ambassador.

Hungary ;

Prime Minister Bardossy is about to resign. It is expected that a new
cabinet consisting of persons less friendly to Germany will be formed.
In addition a law is said to be under consideration which would elevate
the regent Korthy to the rank of a Hungarian prince and confer upon his
son the right of succession. Officer circles are sharply opposed to
this project of founding a Horthy dynasty; but nevertheless it is believed
that the population will accept the measure in the usual passive manner.

Japan :

The situation prevailing between Russia and Japan in Manchuria is char-
acterized as armed peace, which will very soon result in armed conflict
between the two countries.

Special Items :

I. The situation report by the Naval Staff dated 20 Feb. was sent to
the Commanding Admirals of Groups North, West, and South, to the Admiral,
German Naval Command, Italy, and to the Fleet Commander for their infor-
mation.

II. The Armed Forces High Command has felt obliged to reject sharply
the opinion expressed by the Commanding Admiral, Battleships to the
Commanding Admiral, Norway in connection with his request for reinforce-
ment of the air defenses in the Aasen Fjord, and to insist that proper
channels be adhered to.

Situation 7 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation ;

South Atlantic :

The steamer QUEEN MARY with 5,000 Canadian troops aboard put
into Rio on 6 Mar. for a short stop in order to refuel. The naval
tanker BROOMDALE left Montevideo on 4 Mar.

Persian Gulf ;

According to a press report, construction of an American war
town was begun 2 months ago for the purpose of facilitating deliveries
to Russia.

- 62 -

7 Mar. 1942 CONFIDENTIAL

2. Ovn Situation ;

Radiogram 1209 Informs the 0S0RN0 when Group West will take
over command; Radiogram 1324 Informs her about plane recognition signals

Enemy situation reports are sent by Radiograms 0947 and 1536.

No news has been received from our vessels in foreign waters.

II. Situation Vest Area

1. Enemy Situation :

Air reconnaissance located a convoy of 10 steamers south of
the Isle of Wight on a westerly course, and a convoy of 20 steamers
south of Start Point. 6 steamers and 1 destroyer were sighted in the
Bristol Channel. There were 10 steamers at Milford. West of Cardigan
Bay a convoy of 23 steamers escorted by 1 cruiser, 2 destroyers, and
2 patrol boats was located on a northwesterly course.

A light cruiser was sighted on a northwesterly course 150 miles north-
west of the Hebrides.

2. Own Situation ;

Atlantic Coast :

Reports from Britain indicate that the enemy has exact infor-
mation concerning the berths in Ferrol and knows that the ELSA ESSBERGER
has unloaded part of her cargo. Therefore he will also know at once
when she leaves. As only 750 tons of rubber have been unloaded so far,
the Naval Staff hesitates to transfer the ship from Ferrol to Bordeaux
immediately. However, the Naval Attache at Madrid thinks, it is necessary '
to transfer the ship soon; since the British are interested in the
ship, she is by no means safe in Ferrol. Group West is fully aware of
the risk involved in the transfer, but nevertheless agrees with the
Naval Attache. The Naval Staff therefore withdraws its objections and
authorizes Group West to effect the transfer when the weather permits.
Group West is confident that it can master the difficulties involved
and believes that this is a less dangerous move than to leave the ship
in Ferrol, provided the transfer is ably directed and the ship well es-
corted.

Channel Coast :

Some time ago the Naval Staff called the attention of Group
West to the urgent need of bringing up tankers from the west. Group
West reports that every effort is being made to do so. As the result
of the enemy's ruthless PT # boat operations, his successes are mounting.
In view of this situation Group West is wondering whether it might not
be allotted the Dutch gunboats, which are particularly suited for oper-
ations in the Channel. Reconsideration of this question is requested.
In addition it is planned to assign to one of our PT boat groups the
task of diverting enemy forces from important convoys. We will have to
reconcile ourselves to the fact that there will be fewer PT boat opera-
tions against enemy merchant shipping. In order to relieve the situa-
tion to an even greater extent the 3rd Air Force has been requested to
intensify its offensive against enemy PT boat bases, Dover in particular
(see Telegram 1205).

- 63 -

7 Mar. 1942 CONFIDENTIAL

No other reports.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation :

Radio interception located a northbound and a southbound con-
voy in the Thames River. Aerial reconnaissance had to be discontinued
over Scapa Flow because of unfavorable weather conditions. The British
18th Group did little in the way of reconnaissance.

Own Situation :

The steamer ROBERT SAUBER freed Itself without assistance.
Patrol Boat "1211" is no longer icebound and has been towed to Heligo-
land.

During the month of February 1942 convoy movements in the area of the
Commanding Admiral, Defenses, North amounted to 44 convoys comprising
192 steamers with an approximate total of 550,000 GRT.

2. Norway :

Enemy Situation :

On 6 March Radio Schenectady broadcast a London report asser-b-
ing that a large convoy carrying arms and ammunition had arrived at a
port in northern Russia.

This convoy appears to be the predecessor of Convoy PQ 12, which we are
expecting at the present time.

At 1835 our radio intercept service picked up an 0U message (operation
urgent) from Cleethorpes to all ships in home waters.

An intelligence report states that an island off Archangel, located at
660 33' N (64o 331 n (?) Tr.N.), 4o© 39' E, has been turned into a for-
tress. Extremely powerful artillery defenses have been established
there. The same report asserts that the British Navy intends to lay a
minefield off Kristiansund, at 630 10 1 N, 07° 50' E. The vessels of
the American fleet which are earmarked for the defense of Great Britain
are said to be assembling in the Firth of Clyde.

Own Situation :

Bad weather generally hampered our convoy operations.

There was some enemy air activity in the vicinity of Stavanger and near
Lister, but nothing of Importance has been reported.

Group North endorses the request of the Commanding Admiral, Norway for
another anti-submarine barrage off Harstad; see l/Skl 5413/^2 Gkdos.,
in War Diary, Part C, Vol. Ila.

For report by the Admiral, Arctic Coast concerning reinforcement of
minefield no. 1 off Harstad see l/Skl 5442/42 Gkdos., in War Diary,
Part C, Vol. Ila.

- 64 -

7 Mar. 19^2 CONFIDENTIAL

Commanding Admiral, Norway reports that the 5th Air Force has rejected
a request to strengthen the anti-aircraft defenses of Aasen Fjord claim-
ing that it does not have enough forces available; it was suggested
that the Commander in Chief, Air be approached to send additional forces
from other command areas. (See Telegram 1600.)

Captain Puttkamer telephoned that the Fuehrer ordered that the East Asia
steamers POTSDAM and GNEISENAU be put Into operating condition with the
greatest dispatch. These ships are to be used for rapid large-scale
troop movements to Norway.

Following corresponding measures by the Naval Staff Quartermaster Di-
vision, the Naval Staff forwards the following report to the Armed Forces
High Command, Fuehrer Headquarters, attention Navy Liaison Officer:

(1) The engines, personnel, and equipment of the POTSDAM and
GNEISENAU will be ready by 21 Mar.

(2) The ships have no degaussing gear. Degaussing equipment can-
not be installed until after necessary measurements and loop-trial runs
at Brunsbuettel have been completed. This cannot be done until the en-
gines have been put in operating condition, which will require about 2
weeks .

(j5) Installation of degaussing gear will require 3 weeks; subse-
quently another loop- trial run will have to be made at Brunsbuettel.

(k) Thus it will take 5 or 6 weeks to get the POTSDAM and GNEISENAU
fully ready. Only two weeks will be required if no degaussing gear is
installed.

(5) In the opinion of the Naval Staff degaussing gear is indispen-
sable, however, in view of the mine situation and past experience.

(6) The necessary work on the two ships has already been started.

During the month of February 19^2 the following convoy operations were
carried out In the area of Commanding Admiral, Norway:

121 ships totalling 279,789 GRT on the arctic coast; 108 ships totalling
272,019 GRT in the area of the Admiral, North Coast; and 120 ships total-
ling 295,622 GRT in the west coast area. A great many of these were
long-distance convoys, which passed through several or even all of the
above-named areas .

Operation against PQ convoy :

A Focke-Vulf 200 was sent to reconnoiter the waters east of
Jan Mayen, but no results were obtained. Owing to bad weather recon-
naissance was very spotty between 69°-75 N and 23° e. No enemy forces
were sighted. On 8 Mar. our reconnaissance is intended to cover the
area from 10o to 270 E and from 690 N to the pack-ice border, the main
emphasis being concentrated on the area between 18° and 27° E, 71° and
7^° N. In addition, photographic 'reconnaissance is intended over Scapa
Flow, Moray Firth, and Firth of Forth.

Submarine U "377" has not reported Its position In spite of a request
to do so. It appears more and more likely that the boat was attacked
by our own planes on 6 Mar.

Until further notice Group North is suspending any attacks on submarines
and subchase in Norwegian coastal waters or at sea, by planes of the

- 65 -

to. 19^2 CONFIDENTIAL

5th Air Force. Exceptions may be made only vhen the planes are flying
close escort for German forces or when subchase has specifically bee"n
requested. For the text of the directive see Telegram 1602.

Group North reported at 2032 that no news had been received from the

Commanding Admiral, Battleships.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

There is nothing to report about the situation at sea.

According to a report from the Navy Liaison Officer at the Armed Forces
High Command the shortage of forces at the Northern Army Group is so
acute that it may not be possible to capture the Russian islands in the
Gulf of Finland. Since the Navy is greatly interested in seeing these
islands taken promptly, it should be reconsidered whether naval forces
might not be used to bolster the Army's forces during the attack. A
query to this effect is sent out to Group North, Naval Station, Baltic,
and the Admiral, Baltic States (see Telegram 1619).

In reply to this the Admiral, 3altic States reports that the 531st Naval
Artillery Battalion, consisting of 700 men with light and heavy infantry
weapons may possibly be used for this purpose. The battalion should
either be held in reserve, or its companies inserted among those of the
Army. The Admiral, Baltic States proposes an agreement which he has
reached with Commanding General, 13th Army on this score (see Telegram
1900).

During the month of February 19^2 the following convoy operations took
place in the area of the Commanding Admiral, Defenses, Baltic Sea:

11 troop transports totalling 59,621 GRT
23 supply transports totalling 47,3^3 GRT.

V. Submarine Warfare

1. Enemy Situation :

At 1600 an airplane reported an unsuccessful depth-charge
attack on a submarine 60 miles west of Rockall Bank; another airplane
claimed a successful depth-charge 'attack on a surfaced submarine 130
miles southwest of Brest. Radio Freetown repeated an SSS signal from
the Dutch steamer B0DEGRAVEN, 190 miles southeast of Freetown.

All ships approaching Chesapeake Bay have been directed to proceed with
the utmost caution when entering mined areas and to establish contact
with the guard vessel 40 miles east of Cape Henry.

An American radio station gave warning of an abandoned wreck SO miles
east of the Bahama Islands. A submarine fired on the U.S. steamer
CARDONIA in the Windward Passage. U.S. tanker CITIES SERVICE MISSOURI
reported sighting a submarine east of Georgetown.

According to a newspaper report, the British mail steamer CERAMIC in
the Atlantic en route from Liverpool to Rio de Janeiro was damaged in
an engagement with a submarine. Two tankers, which had been damaged by

- 66 -

7 Mar. 19^2 CONFIDENTIAL

a submarine, were able to reach a Canadian port under their own power.
The 5, 335-ton tanker OLYMPIC and the 2, 577- ton steamer NORVANA are over-
due and are considered lost. The British steamers SOTRA and CLAUGHTON
were sunk.

2. Own Situation ;

In the Mediterranean a submarine reported having temporarily
established contact with 3 enemy destroyers east of the Gulf of Solium.
The destroyers were on an easterly course. A supplementary situation
report may be found in War Diary, Part B, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity ;

For reconnaissance operations of the 5th Air Force in connec-
tion with the operation against PQ 12 see "Situation Norway. " Several
planes flew armed reconnaissance over St. George's Channel during the
night.

2. Mediterranean Theater ;

The 10th Air Corps flew cover for the 4th transport group.
Large-scale reconnaissance was carried out over the western Mediterranean,
For reports see "Warfare in the Mediterranean, Enemy Situation". For
results of the mission over Cyrenaica on 6 Mar. see the daily situation
report.

3. Eastern Front ;

Operations In support of the Army centered on the vicinity of
Kholm in the northern sector. Strong fighter forces effectively inter-
vened in the ground fighting south of Lyuban.

VII. Warfare in the Mediterranean

1. Enemy Situation -;

Task Force H, which put to sea from Gibraltar on 6 Mar., was
sighted by air reconnaissance forces in waters north of Algiers. At
first it was located on an easterly Qourse, but during the afternoon
on predominantly westerly courses; it was last sighted at 1650 on a
45° course. For details see Telegram 1835. The task force was evidently
engaged in transferring airplanes to Malta. A French radio message
claims that a British destroyer and a British submarine .reached Gibral-
tar heavily damaged, wl*th dead and wounded aboard.

In the eastern Mediterranean 2 merchant vessels and 2 destroyers were
located off Tobruk.

2. Situation Italy ;

During the night of 6 Mar. enemy planes attacked Benghazi; no
damage was done In the port area. In the afternoon of 5 Mar. an Italian
subchaser was sunk by gunfire from an enemy submarine off Cephalonia.

- 67 -

7 Mar. 1942 CONFIDENTIAL

On the same day the steamer MAGDALENA was torpedoed by an enemy submarine
in the Corfu roadstead. The ship was grounded.

3. Transport of Supplies to North Africa :

The 4th transport group, consisting of 4 motor ships, departed
in the morning of 7 Mar. Its close escort consists of 6 destroyers and
3 torpedo boats, surrounded by an outer screen of 3 cruisers and 4 de-
stroyers.

The steamer PETRARCA arrived In Benghazi on. 6 Mar.

Landing Barge "154", carrying 84 tons of motor fuel, is the first vessel
to have left Benghazi for Derna. Two other landing barges will follow.
Two landing barges are en route from Tripoli to 3engha7<. The tanker
LOMBARD LA reached Tripoli on 6 Mar., the steamer SALOr.A on 7 Mar.

4. Area Naval Group South :

Aegean Sea :

On 2 and 3 Mar. a fifth Greek auxiliary sailing vessel was
sunk by an enemy submarine off Salonika.

Black Sea :

Enemy Situation :

A Russian naval lieutenant by the name of Andreyev was cap-
tured at Eupatoria and interrogated by Captain von Baumbach. For copy
of Von Baumbach' s detailed report see l/Skl Im 9086/42 geh. in War
Diary files "Barbarossa".

Own Situation :

Nothing to report.

VIII. Situation East Asia

1. Enemy Situation :

It was reported from London on 4 Mar. that Japanese naval
forces of considerable strength, including cruisers and submarines, are
on their way to the Gulf of Bengal. The gunboats SANDPIPER, FALCON,
GANNET, and TUTUILA, which were part of the former British and American
Yangtze patrol, were turned over to the Nanking (Chungking? Tr.IJ.) gov-
ernment .

The U.S. War Department has announced that three large troop- carrying
transports were sunk in Sublc Bay on 4 Mar. According to statements by
survivors from the battleships PRINCE OF WALES and REPULSE who were
taken prisoner when a subchaser was captured by the Japanese, approxi-
mately 670 officers and men from the REPULSE and 800 from the PRINCE OF
WALES were rescued.

2. Situation Japan :

The sinking of an American aircraft carrier which had been
heavily damaged off New Guinea on 21 Feb. is announced by Japanese Head-
quarters. Another American aircraft carrier, one of special design,
was sunk on 27 Feb. off Bali after having been set afire. On 2 Mar.
the British destroyer STRONGHOLD was sunk by Japanese naval forces south

- 68 -

7 Mar. 19^2 CONFIDENTIAL

of Java. Gunboat ASHEVILLE was sunk on 3 Mar. According to the Dome!
news agency, Japanese marines have landed on the western shore of the
Philippine Island of Mindanao. Reuter reports that Japanese landing
attempts near Amoy have failed. News Analysis No. 11 of the Naval In-
telligence Division, Foreign Navies Branch, contains a report on Japanese
landing techniques, which is based on incomplete documentary evidence
captured from the British. The same issue also contains information on
alternate routes to be used after the loss of the Burma Road.

IX. Army Situation

1 . Russian Front ;

Southern Army Group ;

The enemy attacked along the entire 6th Army Front. In the
Orel Valley the extreme right wing of this army slightly gave way towards
the west. A counterattack Is now in progress. Southwest of LIvny the
2nd Army repulsed all enemy attacks.

Central Army Group ;

Between Sukhinichi and Lyudinovo the enemy unsuccessfully at-
tacked our positions all along the line. In the 4th Army sector all
enemy attacks aimed at the highway in -the vicinity of Yukhnov were beaten
off. An attack northwest of Rzhev resulted in a penetration of our
lines, which, however, was sealed off northeast of Mostovaya. In the
3rd Panzer Army sector our forces carried out successful thrusts south-
west of Demidov. A partisan attack was repulsed south of Velikie Luki.

Northern Army Group ;

Enemy attacks were repulsed in the vicinity of Kholm, north
of Staraya Russa, and on the Volkhov front. •

2. Finnish and Norwegian Front ;
Nothing to report.

3. North Africa ;

There was increased enemy patrol activity, particularly in
the area west- southwest of Tmimi.

*************************

- 69 -

CONFIDENTIAL

8 Mar. 19^2

Items of Political Importance

France :

On the occasion of the funerals of those killed In the British air raids
on Paris, Marshal Fetein Issued a message to the French people. Accord-
ing to a British report, the French Government has protested in London
because of this air raid. The position of the U.S. Ambassador in Vichy
is said to have suffered. His vork has been made more difficult by the
British air raids on Paris. It is said that he has recently been treated
vlth pronounced coolness by Admiral Darlan and Marshal Petain.

Great Britain :

The U.S. radio is concerned with the slowly unfolding crisis in Britain.
It is said that the British are now demanding offensive action and that
they are tired of the everlasting defensive attitude which Churchill ad-
vocates. They claim that Churchill always talks about the future and
accepts with indifference the defeats of the present. Row the most
diversified groups, inoluding the Times and the extreme Conservatives,
as well as the radical Communists, are attacking him violently, and it
is said that it is by no means Impossible that he may resign within
three months. However, it is not excluded that he will get another cab-
inet post or that he will continue to play a role as leader of the op-
position.

While discussing an offensive in western Europe, the British press men-
tions first of all Norway.

This public reference leads to the assumption that noth-
ing will actually be undertaken against Norway.

The former War Minister, Marges son, termed the continuous changes in
the Cabinet an indication of impending disaster, pointing to the exper-
ience of France. He maintained that a systematic war policy is impos-
sible, if Churchill yields again and again to public opinion.

A reference to Germany In 1917-1918 would also have been
apropos .

The British food situation has become noticeably worse during the last
two months. Indignation about the extent of the black market has prompted
the Government to carry out numerous raids which have led to not less
than 42,000 arrests.

During a debate in the Lower House on 5 Mar. concerning allocation of
workers, Bevin accused the employers of not trying to get along with
the workers available, but continually requesting new ones. Discontent
was expressed also about the employment of women, because no special
consideration Is given to women with children. Bevin explained that
labor quotas were calculated on the basis that the climax of the war
would bj reached at the end of 1942. Due. to mismanagement with regard
to manpower these calculations, however, have been upset. Now, at the
crucial moment, he said, production is beginning to break down.

Lord of the Admiralty, Alexander compared the present situation in
Britain to that after Dunkirk, when 73 destroyers were being repaired,
11 had been sunk, and when hardly half a dozen corvettes were available.
Now, however, the number of available vessels is considerably higher.

- 70 -

8 Mar. 19*2 CONFIDENTIAL

He considers the present stage of the var a very oritical one and de-
plores the fact that already there are signs of war weariness In Britain

Kunfl&ry :

Bardossy's cabinet has resigned.

Portugal :

It was learned from Mozambique that action by the South African Union
against this colony Is to be expected during the next three weeks.

Yugoslavia :

According tc Information from a diplomatic source, Increased guerilla
and Communistic propaganda activity is noticeable since the arrival of
warmer weather. Many refugees have gathered in Belgrad; together with
the Communistic mob which is helped and led by former Yugoslav officers
these constitute a danger to the city.

Turkey ;

Because of the attempt tc assassinate the German Ambassador, the Russian
Consulate in Istanbul was searched on 6 Mar. Two members of the Soviet
Russian Trade Commission in Ankara were taken into custody. A consid-
erable number of foreigners of various nationalities is to be forced
to leave Ankara. 250 arrests were made. The Soviet Russian Ambassador
has gone to Moscow to report.

Japan :

An agreement has been reached regarding the continuation of the Fishing
Agreement with the Soviet Union for one more year. Negotiations con-
cerning better exploitation of the oil concessions of Sakhalin are rest-
ing at the present time.

A military government has been established for the occupied area in the
Netherland Indies. The commander of the Japanese forces is acting in
the capacity of governor general. The local governing bodies remain
in office wherever possible.

Special Items :

I. Commanding Officer, Supply and Transports, Italy reported on 27
Feb. to the Shipping and Transport Branch, Naval Staff Quartermaster
Division on the achievements and the fitness of Italian submarines for
purposes of transportation.

14 submarines in 27 trips transported altogether 2,36l tons of fuel,
munition and food supplies during November and December 1941. Two
submarines were lost during these operations.

Not counting the 10 Italian submarines which are being used in the At-
lantic, 14 more medium-sized submarines can be spared for transporting
supplies, so that the monthly capacity can be brought up to 2,000 GET.

For copy of the report see Ski Qu A VI sa 1696/42 Gkdos., in Var Diary,
Part C, Vol. XIII.

II. In addition to the directive of the Armed Forces High Command of
14 Dec. 1941 concerning the reinforcement of the heaviest coastal bat-
teries with anti-aircraft artillery, the Fuehrer has ordered that these

- 71 -

8 Mar. 19*2 COKFr.ZHTIAL

be strengthened further through the addition cf anti-tank vea^c:.:, flame
throwers and mortars, obstacles, possibly mine fields and, if necessary,
infantry units.

On 2 Mar. the Haval Staff ^uartsrmaster Division, Coastal Defense issued
instructions covering the Kavy's tasks in connection with the above
order.

For copy of the orders of the Army High Command and the Navy High Com-
mand, see Ski Qu A I k 3692/42 Gkdos. in War Diary, Part C, Vol. X.

III. Concerning operation "Sportpalast"

On 24 Feb. Haval Group Forth submitted a brief report about this opera-
tion, analysing the events and the measures taken. In vieving the op-
eration involving the two cruisers, Group North observes that it is as
much a matter of luck to transfer ships via the North Sea and Norwegian
Strait undetected as to transfer them undamaged through the German
Bight and along the Norwegian coast to a Horvegian base. As usual, the
shortage of suitable escort forces proves to be a great handicap. Ve
must realize that in any undertaking of similar scope originating in a
Horvegian port and ending in Horvegian coastal waters there will be
danger from mines, torpedoes, aerial torpedoes, and bombs. Another un-
avoidable difficulty which must be taken into consideration from the be-
ginning la the fact that in all western and northern Horway there is no
base which has sufficient dock and repair facilities for modern ships.

Opinion of Haval Staff Operations Division t

The manner in which Group Horth directed the operation deserves recog-
nition. It proved to be absolutely correct. The tactics employed by
the Commanding Admiral, Battleships were correct in view of the situa-
tion. They are not in any way responsible for the torpedo hit on the
FRIHZ EUGEH. The shortage of escort forces proved a very great disad-
vantage. 2 destroyers are an entirely insufficient escort In the area
off Trondhelm, endangered as it is by submarines. The fact that the
weather kept 3 other destroyers from participating was a serious handi-
cap. Although It is not intended to criticize the Commanding Admiral,
Battleships, it is justifiable to ask whether it might not have been
better to delay approaching the coast at Oriphoelen Fjord until daylight
so that the anti-submarine patrol (guard boats and subchasers) as well
as air cover could become fully effective.

The feat of bringing the damaged FRDTZ EUGEH through the difficult ap-
proaches of the fjords deserves special recognition.

IV. Operation "Flscherhalbin3el w (Rybachl Peninsula)

On 6 Mar. Group Horth made known supplementary preparations for the op-
eration and took a stand on the opinions expressed by the Commanding
Admiral, Horway; at the same time the group informed the Commanding,
Admiral, Horway of its wishes regarding the Bantos and Euesel mine
fields. Group Horth intends to have the new destroyers Z "24", "25*»
"26", and "30 , and also minesweepers, bombard the coast during the
landing. The Group does not Intend a diversionary operation of
TIRPITZ and HIPPER to Iceland, since the enemy is so strong that he can
operate in two groups. It is most Important that our heavy forces pro-
vide cover for the landing.

In this connection the Commanding Admiral, Horway reported on 7 Mar.
that with the mines available only part of the minefields requested by
Group Horth can be laid by the beginning of April. The Admiral, Arctic

- 72 -

8 Mar. 1942 CONFIDENTIAL

Ocean Is instructed to lay either the "Bantos A" and the southern half
of the "Bantos B" minefields or one extended "Bantos A" minefield with
two minelayers during the next nev moon period. The Commanding Admiral,
Norway suggests awaiting further developments before laying the remain-
ing minefields.

Commander Busch will take over the post of Liaison Officer to the Moun-
tain Army, Norway on 9 Mar.

V. Transfer of HIPPER to Trondheim

The Naval Staff Informs the Air Force Operations Staff about naval op-
erations being planned, so that the fighter escorts requested by Group
North can be provided. The Air Force Operations Staff replies that the
Air Force Group Command, Central Area and the 5th Air Force will provide
fighter cover and escort Insofar as possible in direct cooperation with
each other and with Group North. It is not planned to have unified
command, as in operation "Sportpalast", and night fighters will not be
used. No additional forces will be supplied.

Group North will be informed accordingly by the Naval Staff.

Situation 8 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation :

North Atlantic ;

' t

According to an Intelligence report from Spain a convoy, com-
ing from the west, has entered the harbor of Gibraltar.

South Atlantic :

3 U.S. cruisers are in Rio, among them the CINCINNATI and the
MEMPHIS; also 5 destroyers. According to an intelligence report from
Spain, the QUEEN MARY has arrived in Rio from the Dutch East Indies and
will depart the night of 7 Mar. It seems that contradictory rumors are
being spread intentionally about the destination and load of the ship.
An Italian agent report confirms from a reliable source that the WAR-
SPITE was sighted in Australian waters, after undergoing repair in Nor-
folk.

2. Own Situation :

No reports from our vessels in foreign waters. Tanker GER-
MANIA is advised that a German submarine will meet her at point "Pfanne"
after 0800 on 12 Mar., and is given further sailing orders. For copy
of radiogram see l/Skl 545/42 Gkdos. Chefs., in War Diary, Part C, Vol.
I.

Information on enemy situation was sent by Radiogram 1034.

II. Situation West Area

73 -

8 Mar. 19^2 CONFIDENTIAL

1. Enemy Situation ;

Air reconnaissance reported sighting 10 to 15 steamers between
the Isle of Wight and Portsmouth and in the harbor of Portsmouth in the
afternoon.

2. Own Situation ;

Atlantic Coast ;

Group West gave orders for the ELSA ESSBERQER to leave Perrol
on 9 Mar. The ship will be met that day at about 0800 in quadrant BF
8581 by 3 or 4 minesweepers. She is to head for Bordeaux. Air Command,
Atlantic Coast has been asked for reconnaissance and escort planes.

Motorship TANNENFELS left Bordeaux for Japan on 8 Mar.

Qroup West and the Commanding Admiral, Submarines are informed about in-
structions given to tanker GERMANIA.

On k Mar. Group West issued the order for departure of ship "28" for the
Atlantic. The code words to be used after leaving the Olronde are
"Tuemmler" or "Schwertflsch". Ship "28" is to enter the area of Group
West on 11 Mar. The Commanding Admiral, Defenses West will be in com-
mand until the ship leaves the French coast; then Group West will take
over as far as 30° W, and then the Naval Staff. The Commanding Admiral,
Defenses West will order departure from Flushing by code word
"Glueckstadt".

Channel Coast ;

nothing to report.

III. North 3ea, Norway, Arctic Ocean

1. North Sea ;

The first troop transport from Hamburg arrived in ICristian-
sand South. No further reports.

2. Norway ;

Enemy Situation ;

On 7 Mar. air reconnaissance sighted 1 cruiser and 1 destroyer
at anchor south of Cape Teriberski. On 8 Mar. no results from air recon-
naissance in the Arctic Ocean.

At 11*10 radio intelligence Intercepted an 0U message (operation urgent),
consisting of 173 groups, directed to all vessels in home waters. Al-
though the British are known to be very careful and capable in handling
their radio messages, avoiding anything that attracts attention, so that
it has been absolutely impossible lately to draw any conclusions from
them regarding operations; it is wrong to assume in this case, as does
Group North, that this lengthy message does not concern operations.
Outside of that, only a message to radio station Murmansk was intercepted,
inquiring whether a radiogram sent from an unidentified vessel and
picked up at 1538 had been understood.

- 74 -

I

8 Mar. 1942 CONFIDENTIAL

Ova Situation :

The Investigation ordered on 6 Mar. to determine whether sub-
marine U "377" was damaged or sunk at Moskenes by our own airplanes
could not be carried out on that day, because of the weather, and was
unsuccessful on 7 &nd 8 Mar. It Is possible that a submarine sighted
diving In quadrant AB 6686 on 8 Mar. by our air reconnaissance was sub-
marine U M 377 rt # since the position corresponds to her operational orders
The fact that she has not answered the various requests to state her
position may be due to a breakdown of her radio. Por detailed reports
by Group North concerning possible attack on submarine U "377" see
Telegrams 0113, 0201, 1113, and 2356. For inquiry sent by Naval Staff
to Group north and Commanding Admiral, Norway to determine whether the
order prohibiting submarine chase was known by the Air Force in time,
and for information sent to the Armed Forces High Command, Operations
Staff and the Air Force Operations Staff, see Telegrams 1619 and l6l6.

The 12th Subchaser Flotilla left Bodoe for the south; the 4th Mine
Sweeper Flotilla arrived in Kristiansand South from Germany.

In the morning of 7 Mar. there was enemy air activity over Trondheim
and Bergen (reconnaissance) and on 8 Mar. from 0520 to 0600 over the
coastal island area off Bergen.

Transports to northern Norway were delayed because of blizzards and
storms. i

In order to save fuel oil and to speed up repair of ships, in view of
the frequent damage suffered by destroyers and torpedo boats, Group
North requests that the Trondheim shipyard be equipped at onee to handle
important repairs (see Telegram 2303 ).

The Naval Staff Quartermaster Division and the Naval Ship Construction
Division will attend to the matter. Concerning the request of the
Commanding Admiral, Norway for additional anti-submarine barrages off
Nordkyn, the Naval Staff suggests laying the barrage in the shape of a
cross in order to be able to Intercept submarines proceeding immediately
north of Nordkyn, parallel to our own shipping route (see Telegram 1815) .

Operation against Convoy PQ 12

The operation did not achieve the desired result on 8 Mar.

If the search of the Commanding Admiral, Battleships, geared to an enemy
speed of 6 to 8 knots, should remain without result, Group North con-
siders it possible that the convoy stopped or turned back, since they
noticed that they had been sighted by our planes on 5 Mar. For message
from the Group, see Telegram 1948.

At 1145 Group North had radioed the Commanding Admiral, Battleships that
the enemy was expected to be in quadrant AB 5970, 5510, 6210, and 6590
on 8 Mar. at 0800, and in quadrants AB 6590, 6210, AC 1760, and 4560 on

9 Mar. at 0800. The Group suggested that the search be abandoned at
sunset on 9 Mar., and that the task force return to Trondheim. (See
Telegram 1145.)

Group North reported at 2321 that on 7 Mar. at 1813 the 5th Destroyer
Flotilla sank the Russian steamer IM0RA in quadrant AB 5697* Destroyer
Z "25", the IHN, the SCHOEMANN were released for Narvik and Tromsoe from
the forces of the Commanding Admiral, Battleships at 2100 on 7 Mar. and
at 0740 on 8 Mar. for refuelling, since the weather made it Impossible
to refuel at sea. The Commanding Admiral, Battleships is operating

- 75 -

8 Mar. 19*2 CONFIDENTIAL

against the convoy south of Bear Island, and Is planning to assemble
the TIRPITZ, destroyer Z "25" and the SCHQEMAHH In quadrant AC 4755 at
0800 on 9 Mar. In order to continue the operation. It Is planned to
return to Trondheim In the morning of 10 Mar. Our air reconnaissance re
ported sighting the TIRPITZ at 1210 In quadrant AB 6631 and at 1235 In
AB 6533. (See Telegram 2321.)

Submarines D "134" and "589" were ordered to ne¥ attack positions south-
east of Jan Ma yen to patrol that area for naval forces and the convoy.

17. Skagerrak, Baltic Sea Entrances, Baltic Sea

Icebreaker CASTOR was damaged again while clearing a path, but it vas
possible to repair her within 7 hours with the ship's own repair facil-
ities. Icebreaker SISU, together with the LEIPZIG, the EMDZH, and 2
Finnish steamers, coming from the east, passed Rlzhoeft en route to
Swlnemuende .

The Raval Staff accepts the suggestion of the Commanding Admiral, Baltic
Countries (see war Diary 7 Mar.) concerning use of the 531st Raval Coastal
Artillery Battalion. Group Horth, Raval Station, Baltic, and the Com-
manding Admiral, Baltic Countries are Instructed that the Commanding
Admiral, Baltic Countries is to make arrangements directly with the 28th
Army and should point out at that time that the same forces are later
to take over the occupation of the island, and that no other naval
troops will be available.

results of the investigation are forwarded to the Armed Forces High
and, Operations Staff; and the Army General Staff via the Raval
Liaison Officer; a copy is sent to Group Horth.

For copy of the telegram see 1/Skl 5*89/42 Gkdos. in War Diary, Part
C, Vol. III.

V. SubmfcJlne Warfare

1. Enemy Situation :

A surfaced submarine was reported west-northwest of the Faroe
Islands by a Scapa Flow patrol vessel. Fleet Commander, Horth Atlantic
reported on 6 Mar. that 4 French submarines passed Gibraltar in easterly
direction, accompanied by a surface vessel. According to agent report
these were 4 British submarines of the SHARE class. An airplane reported
attacking a submarine at Halifax.

U.S. radio stations repeated submarine warning regarding definite sight-
ing of a submarine in the Windward Passage. At the same time, all
merchant ships in the Atlantic received coded radio messages, presum-
ably new sailing orders.

The submarines in question are probably Italian.

2. Own Situation ;

Submarine U "587" reports sinking the HAW3EGEDA from Green-
land southwest of Cape Race; presumably the ship was a camouflaged

- 76 -

8 Mar. 1942 CONFIDENTIAL

escort vessel. Submarine U "129" reports sinking the U.S. steamers
MARY and STEEL AGE on the coast of Guiana. Supplementary situation
report in War Diary, Part B, Vol. IV.

Telegram 1914 informs the Commanding Admiral, Submarines concerning ar-
rival of the Swedish vessels PERU and REMMAREN at the western border of
the operations area at 0800 on 9 Mar.

VI. Aerial Warfare

1. British Isles and Vicinity :

107 planes of the 3rd Air Force attacked Hull during the night.
5 FW 200* 8 of the Air Commander, Atlantic Coast provided escort for the
TANNENFELS and the ELSA ESSBERGER without any special events. Enemy
planes raided Westphalia and the Ruhr area, with some damage in Ober-
hausen, Essen, and Dortmund. Rail communications between Oberhausen -
Hanborn has been Interrupted. Other enemy incursions took place over
Belgium, northern France, and western France. Damage to the Ford fac-
tory at Polssy near Paris is reported. From Holland comes a report of
4 enemy incursions; bombs were dropped at two places.

2. Mediterranean Theater t

Besides escorting the 4th transport group, our planes are
continuing to attack Malta, especially the airfields. Moreover, on
7 Mar. attacks were made with obvious success on the harbor of Tobruk
and railroads in the Marsa Matruh area. The raids on airfields of
Cyrenaica and Malta were continued also during the nights of 7 and 8
Mar.

3. Eastern Front ;

Fires were observed as a result of our night raids on the
harbors of Novorosslak and Kerch. In the Arctic Ocean an attack on a
steamer and a destroyer in the harbor of Yokanga was attempted twice
but was unsuccessful because of strong enemy defense. Reconnaissance
in the Arctic Ocean remained without results.

VII. Warfare in the Mediterranean

1. Enemy Situation ;

In the afternoon Task Force H returned to Gibraltar; the
MALAYA docked. A convoy consisting of 13 freighters with an auxiliary
cruiser, a destroyer, 2 corvettes, and 2 gunboats arrived in Gibraltar
from the west. In the night of 7 Mar. Italian submarines sighted 5
destroyers about 50 miles north- northwest of Ferrat, heading west. The
number of ships in Valletta harbor (3 cruisers and 3 destroyers) re-
mained unchanged all day. Malta forces therefore did not attack the
4th transport group. The radio intercept service reported that at 1325
an enemy plane was maintaining contact with this group. In the eastern
Mediterranean German air reconnaissance sighted 3 merchant ships with 2
destroyers at Marsa Matruh, heading southeast. In the harbor of Tobruk
a burning vessel was observed (see Aerial Warfare).

2. Own Situation :

- 77 -

8 Mar. 1942 CONFIDENTIAL

Concerning the decision of the Naval Staff with regard to the
operation of the 3rd PT Boat Flotilla, the German Naval Command, Italy
reports the plan to transfer 4 boats of the 3rd PT Boat Flotilla to

Suda under the flotilla commander. Thus for the time being 3 boats are

available for mine operations against Malta. Because of the number of

hours they have been in operation, however, they cannot participate in

the Cyrenaica mission. For copy of report see l/Skl 549V*2 Gkdos. in
War Diary, Part C, Vol. XIV.

3. Situation Italy :

Enemy planes attacked Benghazi during the night of 7 Mar. No
damage was done in the harbor. During a day attack on Benghazi on 7
Mar. an Italian minesweeper was slightly damaged. According to an
Italian report, the British submarine which sank the steamer MARIN
SANUDO was destroyed by an Italian submarine. A report of the shelling
of Derna by British submarines on 7 Mar. was found to be erroneous by
the German Africa Corps. (See Telegram 1330.)

4. Transport of Supplies to North Africa ;

The 4th transport group to Tripoli is proceeding according
to plan. Motor ship MANARE will go from Trapani to Tripoli by the
western route, escorted by 2 destroyers. Coastal traffic as scheduled,
without particular events.

5. Area Naval Group South ;
Nothing to report.

VIII. Situation East Asia
Nothing to report.

IX . Army Situation

1. Russian Front ;

Southern Army Group ;

Strong enemy attacks at the south wing of the Von Kleist
group at the Mius front were repulsed. An attempted breakthrough at
the center of the front, supported by 30 tanks and 25 batteries, was
repulsed by counterattack with heavy enemy losses. The attacks directed
against the south wing of the 6th Army led to small penetrations tem-
porarily. However, the enemy succeeded in enveloping one of our units
west of Balakleya. The strong pressure on our lines at Volchansk as
well as south of Trokhorovka makes it evident that the enemy is planning
to attack Kharkov. A counter operation has been initiated.

Central Army Group ;

Lively combat activity is going on in the area of Sukhlnichl
as well as west and southwest of Tukhnov. Our forces are continuing to
encircle the enemy south of Vyazma. At Gzhatsk and at Rzhev the enemy
employed strong forces to break through our lines. Counterattacks are

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8 Mar. 19^2 CONFIDENTIAL

in progress. The enemy troops which had penetrated into Byeloi were
thrown back to the north. At Usvyat strong enemy pressure is being ex-
erted on our column.

Northern Army Group ;

Kholm is being attacked by the enemy from the east with strong
forces. In the Polovei and the Pola valleys enemy attacks were repulsed.
Pressure in the Pola valley continues to be strong. In the area of
Staraya Russa and at the Volkhov front the situation remains unchanged.

2. Finnish and Norwegian Front :

Lively combat activity south of Rogozero. The supply road to
the northeastern front is blocked by snowdrifts.

3. North Africa :

Normal scouting and artillery activity on both sides. A
German reconnaissance patrol which pushed forward as far as the area
100 km. northeast of Gialo did not make any contact with the enemy.
88 km. northeast of Benghazi a German patrol was shot at by 70 to 80
Arabs in ambush.

*♦***#*****♦*#*#*#*****♦*

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CONFIDENTIAL
9 Mar. 19^2

Items of Political Importance

Australia ;

General Gordon Bennett pointed out that the time left to Australia is
too precious to be wasted on lengthy discussions as to who is to be
blamed for the fall of Singapore. He maintained that Australia is in
great danger and that Japan, in her accustomed manner, would attack
the country at the weakest spot and try to conquer suitable airbases in
the north in order to proceed subsequently from base to base into the
center of the country. For that reason one should try, by all means,
to prevent the Japanese from getting a foothold in Australia. The
strength of the Japanese lies in the offensive, whereas they are not
very efficient in the defensive. The most important thing, according
to General Bennett, is to build up the strongest possible air force.

Sweden ;

According to a report from a military source, Sweden's neutrality will
be defended at all cost. Sweden refuses to accept any outside help for
the time being. In case of an Anglo-American attack on Finland, Sweden
would side with that country. In this connection operations against
Norway as far as the Swedish border or an advance by way of northern
Norway or Petsamo will not as such be considered as direoted against
Finland. Attractive as the idea may seem of getting an exit to the
sea beoaus* of British oapture of Narvik and the ore railroad, Sweden
would. In all probability, refrain from participating in a British
operation of that sort, in view of German retaliation.

Iran ;

Differences between Russia and Britain are growing steadily. Russia is
trying to separate the northern provinces from Teheran. In the oapital
a communist paper is published whioh is openly agitating against Great
Britain. The Anglophile president of the cabinet failed in his attempt
to form a new oabinet. For that reason he left Teheran and resigned.
The Shah was plaoed in protective oustody in his palaoe in Teheran after
a vain attempt to flee.

Great Britain ;

The artiole in the Time s concerning the relations between Great Britain
and Russia was much quoted in the world press. Swedish papers assume
that the Russians have always been of the opinion that British recogni-
tion of the incorporation of the Baltic States into the Soviet Union
was a basic prerequisite for the agreement with Great Britain. It is
said that the majority of the Americans in Great Britain believe that
the U.S. should not be in a hurry to mix into political discussions
about the future order in Europe.

U.S.A. :

Acoording to press reports, it Is anticipated that there will be a
break in the relations between the U.S. and Vichy very soon.

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9 Mar. 1942 CONFIDENTIAL

Conference on the Situation vlth the Chief, Naval Staff

I. In his report on the progress of the operation of the Commanding
Admiral, Battleships against convoy PQ 12, the Chief, Naval Staff em-
phasized particularly the great risk involved In operations of that
nature, due to the lack of German aircraft carriers and Insufficient
control over the air forces. A careful Investigation Is therefore nec-
essary to determine whether such an operation with all its contingencies
is justifiable, considering the main task of the heavy vessels, which

is to ward off a large-scale enemy landing. At any rate, much more ex-
tensive long-range reconnaissance is necessary than was possible in the
current operation. In the opinion of the Naval Staff, the submarine op-
eration planned by Oroup North is out of proportion to the small number
of 19 available boats, so that these forces have been scattered too
widely. It is particularly noteworthy that enemy radio messages inter-
cepted did not give the slightest clue to the enemy's activities.

II. The Chief, Naval Staff Operations Division, Operations Branch re-
ports on the security forces in the western area and on the request of
Group Vest concerning allocation of the Dutch gunboats. (See War
Diary 7 Mar.)

III. The final report of the Commanding General, Armed Forces, Vest con-
cerning the enemy operation against the Air Force radar equipment at
Cape d'Antifer was discussed. The report emphasizes the excellent
cooperation between all the branches of the Armed Forces.

IV. The Naval Staff Operations Division, Operations Branch reported
concerning submarine U "577" that the Naval Staff ordered clarification
of the following points by Oroup North and the Commanding Admiral,
Norway:

1. Was the order prohibiting submarine chase actually known to
Air Force commands?

2. Could there be a misunderstanding with regard to the zone in
which submarine chase is prohibited?

3. To what branch of the Armed Forces did the coastal patrol
post of Mykoerne belong?

4. Did the planes act independently or upon naval request? If
so, from what command?

(See Var Diary 8 Mar., Situation Norway .)

V. Group North reports about the conference between Field Marshal
List and the Commanding Admiral, Battleships on the TIRPITZ on 4 Mar.
in the presence of the Chief of the 5th Air Force. List is investigat-
ing the situation in Norway by order of the Fuehrer.

The Chief of Staff of the Commanding Admiral, Battleships presented his
opinion on the naval situation and possibilities for operations. Main
idea: It is very difficult to ward off strong enemy forces with our
present inadequate Trondheim group; furthermore it is altogether pos-
sible that our forces would arrive on the scene too late even if the
attacking enemy force, which probably would utilize weather not suitable
for flying, were small. He emphasized especially the need for the
best possible air reconnaissance and participation of adequate bomber
forces in all naval operations of offensive and defensive character.
The Chief of the 5th Air Force agreed that the air forces are at pres-
ent very weak, and that berths have inadequate antiaircraft protection.

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9 Mar. 19^2 CONF'DENTIAI

VI. The Chief, Naval Staff Operations livision, Operations Branch re-
ports on the plans to use the 531»t Naval Artillery Detachment for- the
occupation of Russian islands in the Gulf of Finland (see Var Diary 6
and 7 Mar.). According to a message from the Naval Liaison Officer to
the Armed Forces High Command, the Armed Forces High Command is planning
to drop this plan and occupy the Shepel-Oranienbaum area instead.

The Naval Staff vould regret it very much if these is-
lands would not be occupied, even though the Shepel
area would be very helpful for controlling the inner
Kronstadt Bay.

VII. The Naval Adjutant to the Fuehrer reported that the Fuehrer is
anxious to have steamers POTSDAM and GNEISEHAU ready for operations,
and believes that degaussing gear is necessary.

Group North doubts the value of the degaussing gear. The
Chief, Naval Staff will ask the Fuehrer to make a de-
cision at the conference on 12 Mar.

VIII. The Naval Staff has investigated a proposal sent to the Fuehrer
by a Dr. Dyes concerning cutting off the American bauxite supply. The
Naval Staff was quite aware of the bauxite in Dutch and British Guiana.
The Commanding Admiral, Submarines had already been informed on this
score in connection with submarine operations. Dr. Dyes ideas to de-
stroy the areas by means of planes, sleeping sickness germs, or with
the aid of the convicts from French Guiana are impractical because of
geographic conditions. Destruction of the surface mines would not be
effective for any length of time. U.S. industry would be able to con-
vert to local alum earth in a short time. The Naval Staff has pointed
this out to the Fuehrer's Adjutant, Captain von Puttkamer, telling him
that the Naval Staff had already some time ago ordered submarine opera-
tions In the area of the Surinam and Demerara estuaries. The Chief,
Naval Staff agrees.

U. The Chief, Naval Staff Communications Division reports about dif-
ficulties in radio communications during the current operation of the
Commanding Admiral, Battleships. It will be necessary to simplify the
system by decreasing the number of circuits.

The Japanese Admiralty has termed about a third of the information sup-
plied by Germany as valuable. It is unfortunate that as yet no Jap-
anese naval officer has been appointed for training in German communi-
cations, as planned, since the officer in Europe who was originally des-
ignated has been given another assignment.

I. The Chief, Naval Staff Quartermaster Division reports on the ef-
fects of additional cuts in raw material allotments for the second
quarter of 19^2; on changes In organization in the Vest Area which are
to be discussed with the Armed Forces High Command; on the desires of
the Transportation Minister regarding naval assistance to the merchant
marine; and on the attitude of the Navy about plans to appoint a
special commissioner for maritime shipping (Gauleiter Kaufmann in coop-
eration with the Reichsmarschall ) .

XI. The Naval Staff Operations Division, Foreign Affairs Branch, reports
that trade has been stopped between North America and French Vest Africa.

XII. The Naval Liaison Officer at the Armed Forces High Command reported
that the Fuehrer agrees in principle with the memorandum of the Naval
Staff of 4 Mar. However, at the present time the forces for carrying

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9 Mar. 1942 CONFIDENTIAL

out the Suez operation are not available. The Fuehrer would like to
know whether the Navy believes it could provide the necessary transport
facilities. The Navy believes that this is possible if a large number
of naval barges are used and if Italian plans to occupy Malta are
carried out.

XIII. According to a Fuehrer directive, the coming German Army operations
in the East will be known as operation "Siegfried . Italian, Rumanian,
and Hungarian operations will be known as operations "Mars" I, II, and
III.

XIV. The Chief, Naval Staff Operations Division, Operations Branch re-
ports on the plans of Group North on the transfer of the HIPPER to
Trondheim. (See War Diary 6 Mar.)

For a transcript of the report, which has the approval of the Naval
Staff, see War Diary, Part C, Vol. Ila.

Group North reports that it is not planned to launch operation
"Eisenbahn" prior to 14 Mar.

Special Items :

I. On 4 Mar. Group North reported that according to a number of
prisoner statements the fall of Leningrad was expected in that city in
the late summer of 1941, and opposition would have been slight at that
time. The fact that the city was not occupied saved a large part of the
Russian fleet, and particularly the shipyards and armament factories
for the enemy.

Group North believes It of the greatest importance for naval warfare
not to pass up another opportunity to occupy the city. Even a temporary
occupation of Leningrad would make it possible to destroy the remainder
of the fleet and the armament factories. This would release consider-
able German naval forces for other tasks. If Kronstadt were taken,
considerable amounts of raw materials and scrap iron would fall into
German hands.

The Naval Staff fully agrees with these observations.
It does not seem advisable to bring this matter to the
attention of the Armed Forces High Command at the present
time, but it will be kept in mind.

II. Antonescu sent his thanks to the Fuehrer and the Commander in
Chief, Navy, after the Admiral, Black Sea informed him about the trans-
fer of special Italian weapons to the Black Sea.

Situation 9 Mar. 1942

I. Var in Foreign Waters

1. Enemy Situation !

See News Analysis No. 12 of the Naval Staff Intelligence Di-
vision, Foreign Navies Branch for Information concerning organization

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9 Mar. 1942 CONFIDENTIAL

of command, command areas, number of ships available and under construc-
tion, manpower, bases, and naval air fields of the U.S. Navy In the
beginning of 1942.

South Atlantic ;

According to an intelligence report from Portugal, a convoy
heading north passed the Cape of Good Hope at noon on 8 Mar.

According to the radio Intercept service It Is assumed that the chief
of the South American Division is assumed to be on the BIRMINGHAM en
route from America to Freetown.

2. Own Situation ;

Ship "28" left Brunsbuettel for Flushing.

Information on the enemy situation is sent by Radiogram 1911.

lit Situation West Area

1. Atlantic Coast :

Enemy air attacks on Lorlent and St. Nazaire on 8 Mar. were
belatedly reported. Slight damage and some casualties in St. Nazaire.

According to the radio Intercept service, the TANNENFELS was located
by a Sunderland plane at 0633 at 470 10 ' N, 11° 20' W, and was attacked,
according to the ship's report, at 0638. Group West instructed her by
Radiogram 0853 to head for Spanish territorial waters if the enemy
plane continues to maintain contact and if the weather permits. At the
same time the weather report for the area northwest of Finis terre was
sent to the TANNENFELS.

Since no further reports were received, it can be as-
sumed that the TANNENFELS shook off the plane and is pro-
ceeding on her way. She has been notified to this ef-
fect by Radiogram 1850.

Group West has instructed the 0S0RN0 and the TANNENFELS via Radiogram
2114 to be particularly on the alert for convoys when passing through
the area between 20O and 280 W on 10 Mar., since it is possible that
the dates of departure have been changed.

Radiogram 1920 contains sailing instructions for the 0S0RN0. The trans-
fer of the ELSA ESSBERGER has so far proceeded according to plan.

2. Channel Coast :

There are no reports in particular about the situation at sea.

Since shelling ships located at sea is usually very ineffective, it does
not justify the wear and tear on the gun barrels, which is not incon-
siderable in the long run. The Commander in Chief, Navy therefore de-
sires that the coastal batteries shoot only at valuable ships in the
future, and then only if there seem to be some chances of success.
Otherwise the batteries are to shoot only when it is necessary for keep-
ing the personnel in training and ready for action.

- 84 -

9 Mar. 1942 CONFIDENTIAL

A directive to this effect is sent to Group West and the Admiral, France.

The Admiral, France is to issue the necessary orders in agreement with
Group West.

Ill* North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation ;

According to the radio intercept servioe, one northbound and
one southbound convoy was in the Thames. Air reconnaissance located a
convoy of 24 steamers with 2 destroyers and 2 escort vessels off Flam-
borough Head on a southerly course.

Own Situation ;

Enemy air activity over Wilhelmshaven and Borkum in the night
of 8 Mar. The Commanding Admiral, Defenses North requests permission
from Group North to have the KAISER lay minefield IV a with 170 mines,
and to have the 1st Minesweeper Flotilla lay minefield IV b with 70
mines.

The convoy and escort service proceeded according to plan without spe-
cial Incidents.

38 ground mines were swept in February 1942 in the area of the Command-
ing Admiral, Defenses North. During 19 air attacks on forces of the
Commanding Admiral, Defenses North 8 planes were shot down. One vessel
was sunk and 2 were damaged. 13 men were killed. One steamer was sunk
by a mine.

2. Norway ;

Enemy Situation ;

At 0900 a British carrier plane reported one German battle-
ship and 3 destroyers on southerly course in quadrant AF 2626. At
0955* 1031# and 1200 new position reports by planes about a German
force were intercepted. At 1030 a ship, presumably a submarine, reported
an unsuccessful torpedo attack on a ship of the BISMARCK class. At
1044 Scapa issued code word "Falcon" to the Scapa forces.

According to air reconnaissance, a British force consisting of 1 air-
craft carrier, 3 heavy and 1 light cruiser were located at 1115 about
100 miles west of the Vest Fjord on northerly course proceeding at 30
knots. Contact was maintained until 1258, when the force turned west
in quadrant AF 2283. At 1415, 4 destroyers on course 110° were reported
in quadrant AF I863. Two destroyers reported in quadrant AC 3785 with-
out indication of the time were probably German forces.

Own Situation ;

Group North reported that the Commanding Admiral, Battleships
broke off the operation on 8 Mar. at 2200 and turned back. He la to
meet the destroyers at 0800 on 9 Mar. in quadrant 31 85.

At 0900 enemy planes established contact with the TIRPITZ, which was es-
corted by only one destroyer. The battleship was attaoked at 1020 by

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9 Mar. 19^2 CONFIDENTIAL

20 to 35 Svordflsh carrier planes simultaneously. At 1100 she '-was able
to report, however, that so far heavy attacks by torpedo carrying planes
had been repulsed. At 1219 Group Worth reported that the TIRPITZ was
heading for the Vest Fjord, that the destroyers were joining her, and
that the torpedo boats and minesweepers were being brought up from
Trondheim. At noon her location was reported in quadrant AE 3549. Ju
88' s have been requested to help out. At 1301 the TIRPITZ reported
shooting down 3 Swordfish planes. At 1315 Group North informed the
Commanding Admiral, Battleships, the 5th Air Force, and the Naval Staff
that judging from reports from the radio intercept service and the
presence of torpedo planes, there are probably 1 or 2 aircraft carriers
within 150 miles radius of quadrant AF 3545. At 1356 the Commanding
Admiral, Battleships urgently requested evening reconnaissance, since
he was considering proceeding to Trondheim by night, and at 1413 he re-
ported that he would start for Trondheim soon, either by way of the
inter-island route or outside of the islands, depending on the situation.

At 1417 the TIRPITZ located a submarine west of Moskenstraumen, and
evaded a torpedo. Furthermore in the afternoon torpedo boat T "5" re-
ported a Sunderland plane in the vicinity of the Vest Fjord.

Evidently unaware of this report, Group North agreed at 1635 that the
ship should try to break through to Trondheim at once.

On the basis of the noon air reconnaissance reoorts, evidently received
in the meantime (see Enemy Situation), the Group ordered the Commanding
Admiral, Battleships at 1749 to proceed to Narvik. Purpose: to leave
the TIRPITZ there until the route to Trondheim was free from enemy
forces. Until then, subchase should be carried on in the Vest Fjord,
and the Air Force should operate against naval forces, particularly
against aircraft carriers.

The Group requests the 5th Air Force to attempt to locate the reported
enemy force on 10 Mar., and if possible attack it.

Submarines U "589", "403", and "377" were assigned new attack positions
in quadrants AF 28, 25, and 22. The Admiral, Arctic Ocean will have
command of submarines U "456", "436", and "454" beginning 9 Mar. at
2400. The submarines are operating east of 28o E.

Submarines U "405" and "592" are in waiting position in quadrants AF
5820 and 5880.

The Group ordered the Commanding Admiral, Norway to prepare the harbor
defenses in Narvik during the TIRPITZ* stay for enemy planes, submarines,
mines, PT boats, and destroyers, supported by cruisers and battleships.

No additional reports were received by the Commanding Admiral, Battle-
ships until the end of the day.

The search for survivors of U "377" was discontinued without having
been successful.

The convoy situation ia strained. In Tromsoe 4 steamers, and in Bille
Fjord 3 steamers are waiting for escort forces.

In Eirkenes and Petsamo a total of 7 steamers were torn loose during
a heavy storm on 7 Mar.

The Fleet Command supports the request of Group North regarding the de-
velopment of shipyard facilities at Trondheim. (See War Diary 8 Mar.)

- 86 -

9 Mar. 1942 CONFIDENTIAL

For copy see l/Skl 5603/42 Gkdos. in War Diary, Part C, Vol. Ila.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

The Naval Staff fully agrees with the instructions of Group North to
the Commanding Admiral, Defenses, Baltic Sea that convoy operations
should have priority over blockade measures designed to prevent Nor-
wegian ships from escaping from Sweden, since it is doubtful that such
an attempt will be made (see Telegram 1653). According to instructions
from the Armed Forces High Command, Operations Staff, the operation for
capturing the islands in the Gulf of Finland is to be carried out in
time to make it possible to set up the coastal batteries on the islands
and to provide supplies for at least 6 weeks before the ice thaws.

For copy of the instructions sent to the Army High Command, the Naval
High Command, and the Commander in Chief, Air, see l/Skl 5588/42 Gkdos.
in War Diary, Part C, Vol. III.

V. Merchant Shipping

1. See Brief Report No. 7 of the news series issued by the Naval
Staff Intelligence Division, Foreign Merchant Shipping Branch for infor-
mation about traffic of Portuguese and Spanish ships to America, and
other news about foreign merchant shipping.

2, The Naval Staff Intelligence Division, Foreign Navies Branch
estimates that by the end of 19^3 the U.S. will have at its disposal
13»100j000 GRT of cargo space , inclusive of Panamanian and Latin
American ships,- minus any losses „ In view of the above estimate, and
taking into consideration ships built in 1942 with the exception of
tankers, the following cargo space will be available to the Allies for
military purposes and to cover losses which British shipbuilding is un-
able to replace:

1st quarter 1942: 1,200,000 GRT

2nd quarter 1942: 3,200,000 GRT

3rd quarter 1942: 4,200,000 GRT

4th quarter 1942: 5,500,000 GRT

1st quarter 1943: 7,100,000 GRT

Taking into consideration the possible number of round trips (e.g., 8
per year to northern Europe, 6 per year to Africa, 3 per year to the
southwestern Pacific) and the shipping space needed to transport infantry
and tank divisions, as well as the space needed for supply, one can
deduce the possibilities for operations in the various theaters of war.

For detailed figures see News Analysis No. 12 of the Naval Intelligence
Division, Foreign Navies Braneh.

VI, Submarine Warfare

1. Enemy Situation :

A plane northwest of the Hebrides was ordered to attack a sub-

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9 Mar. 1942 CONFIDENTIAL

marine reported at 1730. A submarine sighting report from a steamer-
northeast of Cape Hatteras was intercepted. The Norwegian steamer
CHARLES RACINE (9,957 GRT) was torpedoed tvice 450 miles northeast of
Puerto Rico, evidently by an Italian submarine.

2. Ovn Situation :

The 2 submarines operating south of Freetown reported sinking
steamer BENMOHR (5,920 0RT), tanker BRITISH CONFIDENCE (8,000 GET),
steamer BLUE FUNNEL (6,000 GRT), and steamer BALUCHISTAN (6,992 GRT),
a total of 26,912 GRT.

Supplementary situation report in War Diary, Part B, Vol. IV.

Because of the numerous submarine operations in the northern area, the
Commander in Chief, Navy wants a submarine staff officer assigned at
once to Group North, who would be capable of assuming the duties of a
Commander, Submarines, Norway when the time comes.

See Telegram 1717 for the corresponding directive to the Commanding Ad-
miral, Submarines, with copies to Group North and the Commanding Admiral,
Norway.

The Naval Staff has come to the following conclusions after considering
submarine operations in the northern area:

a. One of the principal tasks of the Navy is to disrupt
enemy supplies to Murmansk and Archangel in order to safeguard northern
Norway and support Army operations against the Soviet Union. This task
is not being fulfilled at the present time. Supplies are being shipped
to Russia almost undisturbed.

b. According to available reports, British convoys to Russia
leave northern or western Scotland and sail west of the Faroes, east of
Iceland, south of Jan Mayen, in the vicinity of the ice border, south

of Bear Island until approximately 40o e, and from there to the Russian
coast. This traffic is of great importance for enemy warfare.

c. So far very few submarines (3 or 4 at the most) have been
committed in the Arctic area. Experience shows that possibilities for
successful submarine operations definitely exist. British convoys

to Murmansk and Archangel are forced to sail through an area which the
ice border limits to from 180 to 200 miles at the most. (The distance
between the southern tip of Bear Island and the latitude of the North
Cape is 190 miles; the distance between the North Cape itself and
Bear Island is 228 miles.) Assuming that the enemy will approach the
Norwegian coast closer than 100 miles because of German forces, only a
strip about 100 miles wide remains to be watched. It is impossible to
patrol this area and attack enemy convoys with 2 or 3 submarines. How-
ever operations by 6 submarines would be very promising. In cooperation
with air reconnaissance it must be possible effectively to hamper, if
not entirely disrupt, enemy shipping in the Arctic area. The depth of
the water is favorable for submarine warfare. The area itself as well
as visibility and light conditions make submarine operations in accord-
and with our accepted tactics possible for the time being. The enemy
defense is limited to escort vessels, of which there will not be very
many. Compared to other areas the conditions for submarine operations
against important convoys must be considered very favorable.

d. The submarines stationed in the area west and northwest
of the Hebrides are improperly placed for intercepting convoys to
Russia, since these do not pass through this area. Possibilities for

- 88 -

9 Mar. 19^2 CONFIDENTIAL

operations by these submarines grow less as the season progresses. So
far they have had very little success. Therefore it seems necessary to
shift their operations area.

e. Most of the convoys to Russia sail in all probability
east of Iceland. Therefore it would be correct to station the submarines
in this" area. However the 1 or 2 submarines stationed there heretofore
are insufficient. Submarines in this area should be increased to 3 or

h.

f . Until May there is danger that the enemy might launch an
attack against northern Norway. Our measures must take this into con-
sideration. Therefore it is not possible to withdraw the submarines
from Iceland or the Arctic Ocean, for example for promising operations
off the U.S. coast; on the contrary, convoys to Russia should be con-
sidered a particularly valuable target for our submarines. To intercept
them it is much better to station several submarines in the Arctic

area (Bear Island - North Cape) than in the Iceland - Hebrides area.

The Naval Staff therefore makes the following suggestions to the Chief,
Naval Staff:

a. The Arctic Ocean submarines of the Admiral, Arctic Ocean
should be increased to at leat 10 or 12 (including those in Narvik).

b. Submarines east of Iceland should be increased to 5 or 4.

c. Submarines stationed northwest of the Hebrides should be
withdrawn.

VII. Aerial Warfare

1. British Isles and Vicinity :

In the night of 8 Mar. 6j planes attacked Hull, 14 attacked
Sunderland, 7 Grimsby and Great Yarmouth during operations against the
east coast of England. 19 planes did not complete the mission. Only
very heavy bombs were dropped, among them numerous "LMB weiss" bombs.
Because of low visibility only the explosions were heard, but no effects
were observed. 5 planes are missing.

9 enemy planes were shot down by fighters in the west area during the
day.

During the night of 9 Mar. 28 planes laid mines in the Thames. Enemy
planes attacked the Rhenish-Westphalian industrial area beginning at
2212, and inflicted some damage. Enemy planes were also active over
Belgium, northern France, western France, and Holland. At 0615 they
sank a tug at Le Havre, and damaged 1 pontoon and 7 railroad cars.

2. Mediterranean Theater :

Attacks on airfields on Malta, in Cyrenalca, and in the
Alexandria area were continued. Planes of the 506th Group chased off
6 or 7 Blenheims, which attempted to attack the 4th transport group
at 1650.

3. Eastern Front :

Lively air activity on all Army fronts on 7 and 8 Mar.

* - 89 -

9 Mar. 19^2 CONFIDENTIAL

For reports of reconnaissance in the Black Sea and over Murmansk see
daily situation reports.

VIII. Warfare in the Mediterranean

1. Enemy Situation :

According to the radio intercept service, British air recon-
naissance on the morning of 8 Mar. located the Hh transport group en
route to Tripoli, as well as the returning 3rd transport group which had
left Tripoli on 7 Mar., in the area north of Cape Misurata.

No action by British naval forces was detected, and
there evidently was none. Also there was no particular
air activity.

No sighting or radio intercept reports were received for the central
and eastern Mediterranean.

According' to photographic reconnaissance on 8 Mar., 17 steamers, 3
tankers, and 4 passenger vessels, together approximately 160,000 GRT,
and 1 monitor, as well as 1 small naval vessel, were in Suez . 15
steamers, 4 tankers, and 2 passenger ships, a total of approximately
80,000 GRT were in Port Taufig . 25 steamers, 3 tankers, and 3 passenger
ships totalling approximately 160, 000 GRT were in Fort Said . 3 steamers,
6 barges, and 4 tugs with barges in tow were southbound in the Canal.
and 3 tugs with a few barges in tow were northbound. At point Km 154.1
there Is one sunken steamer.

According to an unconfirmed Italian report, 2 large British vessels
coming from U.S. shipyards are expected to arrive in Egypt the first
part of April. British military circles are expecting the Axis to at-
tack Malta in the near future. The defense installations of the island
are being reinforced feverishly. According to a supposedly reliable
source, there were 11 submarines of the U class in the Malta submarine
flotilla on 3 Feb.

2. Situation Italy ;

Enemy planes attacked Tripoli between 0055 and 0201 on 8 Mar.
without causing damage of military importance.

3. Transport of Supplies to North Africa :

The 4th transport group arrived undamaged in Tripoli at 1800.

Steamer MANARE was damaged by an aerial torpedo in the vicinity of
Pantellaria, and put into Pantellaria. She will return to Trapani. 6
torpedo planes unsuccessfully attacked empty steamers of the 3rd trans-
port group at 1700. The 4 vessels were proceeding on the east route to
Italy under escort of forces of the 4th transport group.

Steamers WACHTFELS and M0NVIS0 left Tripoli to return on the west route,
each escorted by 1 destroyer and 1 torpedo boat with search gear;
steamer MENAND0 departed to return along the coast. The ships are head-
ing for Naples and Palermo.

Naval barges, 1 torpedo boat, and 1 ferry proceeded along the coast with-
out special incidents.

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9 Mar. 1942 CONFIDENTIAL

4. Area Naval Group South ;

Aegean Sea ;

During the night of 8 Mar. a few enemy planes unsuccessfully
attacked the airfields at Tatoi and Kalamaki. It is being investigated
whether mines were dropped.

The mine operation of the BARLETTA from Candia had to be postponed be-
cause of damage to the ship.

Transports proceeded according to plan without special incidents.

Black Sea ;

Enemy Situation ;

The 11th Army High Command reported that 1 Russian submarine
fired on the coast south of Sudak on 8 Mar. and that one submarine tor-
pedo was fired in the harbor of Yalta on the same day, but did not ex-
plode. In the night of 7 Mar. enemy planes again attacked Saki.

On 9 Mar. air reconnaissance sighted many ships leaving Sevastopol, as
well as renewed supply shipments to Sevastopol and Kerch.

No naval forces were sighted.

Own Situation ;

One of our planes attacked and supposedly destroyed a Russian
submarine south of the Crimea on 8 Mar.

IX. Situation East Asia

The Japanese occupied Rangoon on 8 Mar.

The 98,000 enemy troops on Java surrendered unconditionally at 1500 on
9 Mar.

According to British reports, a considerable number of Japanese troops
landed in New Guinea (Salamaua and Leigh).

The surprisingly swift success against the considerable
number of enemy forces in Java indicates that the will
to resist of the Empire troops and their allies is al-
ready greatly weakened. The only place where the Japan-
ese have encountered serious resistance is Luzon.

On 5 Mar. the Japanese Headquarters released the first detailed report
about the use of the special submarines at Pearl Harbor. Since the
flotilla did not return from this mission, either as the result of en-
emy defenses or because the vessels destroyed themselves, its part in
the successes cannot be determined in detail. It is certain, however,
that these submarines achieved notable success, and caused great con-
fusion in the enemy harbor.

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9 Mar. 19*2 CONFIDENTIAL

J. Army Situation

1. Russian Front ;

Southern Amy Group :

The penetration points north of Taganrog were mopped up in a
counterattack. Enemy attacks west of Slavyansk and north of Losovaya
were unsuccessful.

The enemy forces which had broken through west of Balalcleya were attacked
by dive bombers. Reserves are being brought up. Strong enemy pressure
is continuing east of Kharkov. The battle west of Volchansk has not
yet been concluded.

Central Army Group ;

Heavy fighting is going on near Ve.Miini and in the Sukhinicnl
area. It was possible to repulse enemy attacks in some sectors of the
4th and 9th Armies and the Jrd Panzer Army. Our forces advancing from
Byeloi threw the enemy back to the north.

Northern Army Group :

Fighting continues unabated in the vicinity of Kholm, at
Molvotitsy, and west of the Polovei valley and in the Pola valley.
Northwest of Soltsy several tanks were able to penetrate our lines.

2. Finnish and Norwegian Front ;

Forces of the Maselskaya group are being regrouped south of
Seg Lake.

3. North Africa ;

Stronger enemy scouting activity in the areas west-southwest
of Tmimi and south of Mechili.

**•»»*♦*♦*•*#»♦*****#*♦*»

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CONFIDENTIAL

10 Mar. 19^2

Items of Political Importance

France :

The Rlora trial Is satisfying neither the Vichy government nor the
French people nor the Axis powers. The Axis is interested only in a
discussion of the war guilt, while the French only lament the unfortu-
nate reaction caused within the country as well as abroad "by the causes
of the military defeat disclosed in the military investigation. It is
not at all impossible that the trial will gradually peter out unless it
is officially quashed.

Great Britain ;

The conferences designed to clarify British-Russian relations still do
not seem to have brought about a final agreement; Great Britain de-
clares that she is unable at this time already to recognize "Russia's
territorial demands and is furthermore incapable of doing so without
Washington's consent.

South Africa :

Malan, the leader of the Boer nationalists, demanded in Parliament on
3 Mar. that the South African Union withdraw from the war. He stated
that the Allies cannot win, and that South Africa is threatened by the
Japanese only as long as it remains on the side of the Allies'.

Australia :

According to a report from the Transocean News Agency, the Australians
have founded a separatist movement in Shanghai for the purpose of de-
claring Australia 1 ? independence at once, withdrawing from the war, and
entering into separate peace negotiations with Japan.

Portugal :

Concern about the domestic situation of the country continues to exist.
Salazar's influence with the armed forces has declined as the result of
sending strong and the very best army units for the protection of the
islands and colonies; British propaganda, however, is sparing neither
effort nor money.

Turkey :

Oshima, the Japanese ambassador to Berlin, is expected to arrive in the
near future in Ankara, together with the Turkish ambassador to Berlin.
In this connection there is talk about a diplomatic offensive of the
Axis simultaneous with the military spring offensive.

Among those arrested in the attempt on the life of Von Papen is an
attache of the Russian Embassy.

U.S.A. :

The government is planning to relax the law of 1912 which excludes
Asiatics, evidently as a gesture toward those people of Asia who are
enemies of Japan.

- 93 -

9 Mar. 19^2

fidehtial

3razil ;

Vargas 1 influence la said to be on the decline, and leadership Is being
taken over more and more by the pro-American foreign minister, Aranha.

Conference on the Situation vith the Chief, Naval Staff

I. The Chief, Naval Communications Division reports that according to
the Commanding Admiral, Submarines, the Italians are familiar with
radar decoy balloons (Nebelbold), since some of them have been installed
in Italian shipyards. Therefore the Italian navy vill have to be in-
formed officially thereof at once. The Chief, Naval Staff agrees, but
desires that the necessity of keeping it a secret should be stressed;

he further agrees that the Japanese also should no longer be kept in
ignorance of the device.

II. The Chief, Naval Construction Division reports on the repairs of
the GNEISENAU. There are 5 alternatives:

a. Doing only structural repairs in Kiel, and not replacing
turret A. This would ta^re 9 months.

b. Doing the same thing in Gdynia. This would take 12 months.

c. Replacing turret A by a 38 cm. turret. This would take until
1 Aug. 1943.

d. Replacing turret A by a 28 cm. turret, and simultaneously
lengthening the bow by 12 meters. (The draft would thereby be decreased
by 1/2 meter, and the speed increased by 1/2 knot.) This would take
until 15 Nov. 19^3.

e. Replacing all turrets by 38 cm. turrets, and simultaneously
lengthening the bow. This would take until 1 Feb. 19^.

Transfer of 300 to 500 shipyard workers from Kiel to Gdynia would mean
discontinuing construction of 3 naw submarines; however this has to be
done anyhow because of raw material shortage.

The Naval Staff Operations Division is naturally interested in the
quickest possible repair, and would prefer suggestion b., unless the
time required for suggestion d. could be shortened.

The Chief, Naval Staff will ask the Fuehrer to make a decision at the
conference on 12 Mar. He will make use of this opportunity to urge
that construction of the aircraft carrier and the necessary planes be
continued.

Preparations for transferring the ship to Gdynia should be begun, unless
they are already under way.

Special Items

I. Vith regard to the Garmlsch conference, the Chief, Naval Staff
advises Admiral Riccardi that it is unfortunately impossible to trans-
fer additional motor mine sweepers to the Mediterranean, since only

- 9* -

9 Map. 1942 CONFIDENTIAL

small and medium vesaals can be considered for this purpose, but these
are available only in limited numbers , and are either In the Mediterran-
ean already, or are being transferred to the Black Sea.

Admiral Riccardl is also Informed that due to the transfer of the Brest
ships a certain amount of fuel oil has become available, and therefore
it will be possible to make one more delivery of 20,000 tons of fuel
oil to the Italian navy in March 19^2.

II. The brief report of the Commanding Admiral, Battleships to Group
North [, copies to Naval Staff, Fleet, Commanding Admiral, Norway) about
the operation of 6 to 9 Mar. has been received:

Some of the escorts during departure were late because of delayed orders.

Because of the time element the destroyers did not refuel during the
night, and it was planned to do so either in Tromsoe or during the night
of 7 Mar.

Beginning at 1930 on 7 Mar. until dark a reconnaissance sweep was made
to the north-northwest. Because of the weather no ship planes partici-
pated. At 1730 the RRR signal of the Russian steamer IM0RA, which was
sunk by the IHN, was intercepted. The 0U message (operation urgent)
from Cleethorpes which was intercepted by ship's radio was believed to
be connected with the RRR signal of the IM0RA.

An attempt to refuel the destroyers at sea involved too much time be-
cause of the weather and ice formation. Since it was planned to continue
operating south of Bear Island on 8 Mar., the IHN was sent to Bars tad
to refuel. It was planned to refuel the SCH0EMANN and the Z "25" at
dawn.

The lack of air reconnaissance is being felt very strongly. Neverthe-
less it was decided to continue the operation under the assumption
that Group North would interfere in time if the enemy situation should
prove doubtful. Three code signals were sent but their receipt was not
confirmed. ,

On 8 Mar. because of the weather the destroyers were no longer able to
reconnoiter, and were therefore ordered to Tromsoe. They took along
a message to Group North that it was planned to break off the search on
the evening of 8 Mar., and return to Trondheim. The reasons given were
inadequate air reconnaissance, uncertain enemy situation, and unfavor-
able snow and fog situation, which would make it possible to attack the
ship by surprise.

The ship searched the convoy route at a speed of 6 to 8 knots until
evening. Visibility changed constantly. Search in the area south and
southwest of the island proved futile. A report received from Group
North about the assumed location of the convoy on 9 Mar. was Interpreted
as meaning that the search should be continued on 9 Mar. Misgivings
on account of the unclear enemy situation and the entirely Inadequate
air reconnaissance were therefore, put aside, since it was hoped that
Group North had a better view of the situation and that visibility was
improved. Group North was Informed by code signal that the operation
was being continued, and the destroyers were recalled.

At 1930 a message was received from Group North that it was assumed that
the ship was turning back; at 2000 another message was received stating
that the operation might be continued on 9 Mar. at the discretion of the
commanding officer. Since the decision thus rested exclusively with the

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9 Mar. 19^2 CONFIDENTIAL

Commanding Admiral, Battleships, it was decided to break off the opera-
tion for the following reasons:

a. Entirely unclear enemy situation, since the enemy is probably
aware that the TIRPITZ is at sea; the RRR signal of the Russian steamer;
the OU message from Cleethorpes; and the lack of information about
Scapa.

b. Absence of adequate air reconnaissance in the operations or
the possible approach area of an enemy force.

c. Continuing bad weather.

d. Insufficient escort.

The code signal to turn back was received too late by the Tromsoe de-
stroyers. During the night the ship proceeded to the rendezvous point
designated for loOO on 9 Iter. Beginning at 0800 on 9 Mar., enemy planes
were sighted astern. They were expertly handled wheeled planes, indi-
cating that a carrier and presumably heavy enemy forces were in the
vicinity. It was decided to withdraw into the Vest Fjord. The IHN
joined the TIRPITZ via the Straumen.

An aerial torpedo attack at 1020 is reported. Purely by good luck the
TIRPITZ, escorted by only one destroyer, was able to outmaneuver all
torpedoes, some of which missed her by a few meters or passed under the
ship. 3 planes were shot down by light antiaircraft guns. The lack
of quadruple gun mounts was evident. Volume of fire inadequate to ward
off a mass attack.

West of the Straumen a submarine was located, and 2 torpedoes were
evaded. Previously an urgent enemy radiogram to a submarine was inter-
cepted. The ship entered the Vest Fjord. It was planned to proceed to
Trondheim very soon, since Narvik is a still less adequate base than
Trondheim, and there is greater danger from aircraft carriers because
of the absence of fighter cover.

The overall impression created is that it is unprofitable and risky for one
ship to operate without adequate air reconnaissance in waters frequented
by the enemy. Furthermore, continuous information on the enemy situation,
including reports oii 3oapa Flow and the Kola uases, as well as suffi-
cient bomber and fighter forces, are necessary prerequisites for opera-
tions in the northern area, where the enemy is at present superior.

An examination has been requested of Group North's order with regard to
engaging an enemy of equal strengtr in order to carry out the main mis-
sion. Engagement with an enemy of equal strength, as for example a
ship of the KING GEORGE V class, means an all-out battle, and would
probably result in damages which would endanger the return voyage and
might end in disaster, since the enemy can quickly bring up additional
forces. Therefore the possibility of any extended operations in the
northern area is questionable. •

The Commanding Admiral, Battleships reports subsequently that a fourth
plane was probably destroyed by one of the planes of the TIRPITZ.

The Naval Staff expects Group North to comment on this
report, in which a certain amount of criticism of Group
North's orders can be sensed; therefore the Naval Staff
withholds its opinion for the time being. It wishes to
point out already, however, that there is no doubt that

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9 Mar. 19^2 CONFIDENTIAL

the operation in itself was justified and necessary. The
heavy forces vere transferred to the north area for the
purpose of preventing an enemy landing and of disrupting
enemy supply shipments to Russia. An operation against
a convoy consisting of 15 steamers is within the scope
of this task. If the heavy ships remain in the harbors
entirely, they will very soon cease to he a threat to the
enemy; in such a case the transfer of the ships to
Norway, which was accomplished at considerable risk,
would not have been worth while.

It remains to be seen whether all conditions necessary to
justify the given operation prevailed. Only from this
point of view can an investigation into this first and
unsucessful operation against PQ convoys be permitted.

Situation 10 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation ;

According to Reuter Admiral Stark has been appointed commander
of the U.S. naval forces in European waters. He will replace Vice
Admiral Ghormley in London. The Commander in Chief of the U.S. Fleet,
Admiral King, will take over Stark's duties as Chief of Fleet Opera-
tions, in addition to his present assignment.

No other reports have been received.

2. Own Situation:

waters.

No reports have been received from our ships in .foreign

Radiogram 1044 contains sailing orders for the 0S0RN0. Radiogram 1505
contains changes in the radio regulations for the TANNENFELS. Informa-
tion on the enemy situation (general) was sent by Radiograms 15^3 and
2012.

II. Situation West Area

1. Enemy Situation ;

Radio intelligence intercepted* reports by British motor gun-
boats and unidentified vessels east of Cromer about sighting 4 German
PT boats between 01 36 and 0330.

2. Own Situation ;

Atlantic Coast ;

On 9 Mar. about 20 British planes circled over the coast 70
miles south of Brest. No bombs were dropped. On 10 Mar. one Sunderland
plane attacked a group of vessels including minesweeper M "1601" on

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9 Mar, 1942 CONFIDENTIAL

route "Uhunest" between 0200 and 0400. The plane used floating flares
which burned for 18 to 20 minutes. No damage was caused.

The ELSA ESSBERGSR arrived at Bordeaux at 1700. Since the two last
steamers carrying part of her cargo have arrived in the Gironde, the
total cargo can be considered safe. Thus the following items have
arrived: 30,000 bales of rubber, 200 cases of tea, 8,000 automobile
tires, 800 tons of peanuts, 1,000 bales of hemp, 800 barrels of tallow,
3,000 barrels of oil, cocoanut, soya, walnut, and wood oil. 200 cases
of leather shoes, 1,000 bales of shoe sole leather, ^00 sacks of coffee,
100 tons of ores and 800 (tons? Tr.N.) egg products. The ship and her
engine are in good condition,

Channel Coast :

During an enemy air attack on Le Havre the night of 8 Mar.,
one salvaged and dismantled floating crane was sunk in addition to the
tug PR0TCS. Other damage was slight.

The following flotillas carried out operations during the night of 9
Mar.: the 2nd PT Boat Flotilla operated against convoys off Lowestoft.
The 4th PT Boat Flotilla operated on the Dungeness convoy route and
escorted German convoys. The 2nd PT Boat Flotilla 3lghted nothing and
had nothing special to report. For brief report see Telegram 1910.
The 4th PT Boat Flotilla was fired on by German patrol vessels off Gris
Nez without having been asked to give a recognition signal. PT Boat
S "48" received 4 hits, but no one was injured. While acting as remote
escort for our convoys, the flotilla was twice fired upon unsuccessfully
by heavy British coastal artillery. For brief report see Telegram 1300.

While escorting a large German convoy the 3rd Motor Minesweeper Flotilla
had an encounter at 0345 with enemy gunboats which were lying half a
mile off the coast of Griz Nez. German coastal batteries greatly en-
dangered our vessels and definitely scored 3.7 and 2 cm. hits on motor
minesweepers R M l64" and "165". No one was injured. For brief report
see Telegram 1920.

III. North j6q, iim'tiay, ATw'„.l-, ^oaii

1. North Sea :

Nothing special to report.

2. Norway :

Enemy Situation :

At 1430 air reconnaissance located an enemy force consisting
of 13 vessels under heavy fighter cover on a 90° course in quadrant
AE 9661 (40 miles east of the Faroes). The ships were identified as
1 battleship, 3 heavy cruisers, probably 1 aircraft carrier, and de-
stroyers, but no transports.

The radio intercept service did not detect these forces.

According to an Intelligence report, an Anglo-American landing is to
be expected on 26 Mar. simultaneously at 2 points in Norway: in the

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9 Mar. 1942 CONFIDENTIAL

Trondheim area; and In northern Norway in 'the area through which the 3
Finnish highways to Petsamo, Kirkenes, and Karasjok pass. (See Telegram
1415.)

Own Situation ;

On the evening of 9 Mar. the Commanding Admiral, Battleships
arrived in Narvik on the TIRPITZ, together with 3 destroyers and 2 tor-
pedo boats. For brief report of the Commanding Admiral, Battleships,
see Special Items, II.

Due to failure of a forced -draught fan the speed of the TIRPITZ is re-
duced for 4 days to 28 knots continuous speed. (See Telegram 0524.)

See Telegram 0518 for the request of the Commanding Admiral, Battleships
that four 2 cm. 4-barreled guns be installed at once at turrets B and C
and at the two forward 15 cm. turrets, in view of the experiences during
the air attack on 9 Mar.

The Naval Staff Quartermaster Division will handle the matter. Group
North will call the attention of the 5th Air Force to the long time it
took for the air reconnaissance reports of 9 Mar. and 0453 on 10 Mar.
The Group will send a staff officer to the 5th Air Force on 20 Mar. to
clarify the matter and to see what steps can be taken to rectify the
situation. For copy of telegram see 1/Skl 5694/42 Gkdos. in War Diary,
Part C, Vol. Ila, in files "PQ 12".

Without a doubt the long time required for air reconnais-
sance reports to get through is the main reason why
neither Group North nor the Commanding Admiral, Battle-
ships had a clear picture of the enemy situation in time.
The Group did not receive the decisive report that an
enemy carrier with 3 heavy and 1 light cruisers was
sighted at 1115 until 1839, in other words after more
than 7 hours .

It Is of vital importance for all naval operations that
this problem of communications between air and naval
forces be solved. The Chief, Naval Staff Communications
Division will have to give his full attention to this
task.

In view of the enemy situation, the Commanding Admiral, Battleships has
ordered 3-hour readiness for the naval forces at Narvik, beginning at
2117.

In accordance with the directive of the Chief, Naval Staff, the Command-
ing Admiral, Submarines has appointed Lt. Herbert Schultze Submarine
Staff Officer to Group North; until now he was commander of the 3rd
Submarine Flotilla.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation ;

According to a report from the consulate, captains and crews
have been on the Norwegian ships In Goeteborg since 1 Mar.

2. Own Situation;

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9 Mar. 1942 CONFIDENTIAL

Icebreaker and transport service without particular Incidents

V. Submarine Warfare

1. Enemy Situation ;

Radio intelligence intercepted an S3S report from the British
radio station at Santa Lucia about a submarine attack at the harbor
entrance of Port Castries on the ships lying there; also a message from
the British motor ship ORARI concerning sighting a submarine 250 miles
east of Martinique.

There was livelier reconnaissance in the rendezvous area. A submarine
sighting report by a plane was intercepted from along the east coast of
Iceland (65° 28' N, 13° 10' W).

On 8 Mar. Spanish fishing steamers reported a convoy of loaded steamers
on westerly course between Cape San Vincent and Cape Santa Maria. A
group of 4 steamers, one of them 10,000 GRT, passed Santa Isabel on 7
Mar., evidently en route from Duala to Lagos.

The U.S. Navy Department confirms the torpedoing of the Brazilian
steamer ARABUTAN (7,874 GRT). According to press reports, the TAURUS
was sunk in the Atlantic.

2. Own Situation ;

Since it may be assumed that the enemy forces reported in the
northern North Sea will return to Scotch harbors as soon as it becomes
known that the force of the Commanding Admiral, Battleships has put into
a Norwegian port, Group North believes it advisable to station the
Iceland submarines preferably in the area of the Orkneys, Faroes, and
Shetlands. For the corresponding advice of the Group to the Commanding
Admiral, Submarines, see Telegram 1658 (in files "PQ 12").

The Commanding Admiral, Submarines therefore orders the submarines
stationed west of northern Scotland to take up positions as follows;
submarine U "569" in quadrant AE 99; U "553" in quadrant AF 77 and 78;
U "135" in quadrant AE 93 is also instructed to be on the lookout for
the enemy.

Numerous sinkings have been reported by the submarines operating along
the American coast. Submarine U ri l6l" (Lt. Achilles) reports on an at-
tack on the inner harbor of Port Castries (Santa Lucia). The 2 steamers
of 8,000 and 5,000 GRT which were lying at the pier and were hit prob-
ably sank. The submarine also sank a munitions steamer of 6,000 GRT
off Santa Lucia on 7 Mar.

Submarine U "126" reports on conditions in the Windward Passage.

For details and addition? 1 information see supplementary situation re-
port in War Diary, Part B, Vol. IV.

The submarines in the north Norwegian area are disposed as follows:

Klrkenes: U "436", "456", "585", "454", "589", "435"

Narvik: U "377", "403"

Trondheim: U "405", "586"

Bergen: U "591", "592"

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9 Mar. 19*2 CONFIDENTIAL

8 submarines are stationed in the area of northern Scotland and Iceland.
These are U "87", "553", "753", "135", "569", "213", "701", and "593".
This makes a total of 20 submarines.

For present positions and operations areas see supplementary situation
report.

In reply to the Naval Staff's inquiry (see War Diary 6 Mar.) the Com-
mander, Submarines, Italy states that there are no particular reasons
applying only to the Mediterranean area which are responsible for the
unfortunate ratio between submarines at sea and those in repair, aside
from the tempo of the Italian shipyards, which is 10 to 15# slower than
that of German shipyards. A relatively large number of submarines with
considerable damage have had to undergo lengthy repairs or have been in
need of overhaul. Certain delays have been caused by supply difficulties
For details see Telegram 1620.

Since the Commander, Submarines, Italy is doing every-
thing possible to improve the situation, the Naval Staff
does not need to take any steps.

VI. Aerial Warfare

1. British Isles and Vicinity :

For reconnaissance activity of the 5th Air Force in the
northern North Sea, see Enemy Situation, Norway.

A 2,000 GRT steamer was sunk north of the Shetlands.

7 Ju 88's, 6 He Ill's, and 4 He 115's unsuccessfully attacked enemy
forces.

Very heavy bombs were dropped on the Sumburgh airfield with good results,

Enemy planes during the night of 10 Mar. inflicted some damage in the
Rhenish- We s tphalian industrial area. Enemy planes flew over northern
France and Belgium.

2. Mediterranean Theater :

Our planes continued to attack Malta, as well as airfields
in the Cyrenalca and in the Alexandria area.

The attack on Alexandria on 4 Mar. is said to have caused considerable
damage and to have been the most effective attack in the Suez area so
far.

3. Eastern Front :

The 4th Air Force reports from the Black Sea unsuccessful
aerial attacks on Sevastopol and Novorossisk. Reconnaissance operations
were carried out.

VII. Warfare ±n the Mediterranean

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9 Iter. 19^2 CONFIDENTIAL

1. Enemy Situation :

*

There was no change In the naval situation or In the ships In
the harbors of Gibraltar, Malta, and Alexandria.

According to a reliable French source (20 Feb.) the QUEEN ELIZABETH was
seriously damaged; the VALIANT will be repaired within 4 weeks to
such an extent that she will be transferred to another harbor.

2. Own Situation ;

The Naval Staff confirms the telephone message from the German
Naval Command, Italy that the most essential preparations for PT boat
operations can be made in Suda within a few days, but in North African
harbors cannot be finished in less than 2 or 3 weeks; the Naval Staff
agrees with the German Naval Command, Italy that PT boats are to. be
transferred to Suda only after preparations in North Africa have pro-
gressed to such an extent that PT boats can provisionally operate
there. It is expected that preparations will continue to be made with
greatest dispatch. (See Telegram l8l8.)

3. Situation Italy ;

Enemy planes attacked Benghazi without inflicting damage.
Presumably they dropped mines.

4. Transport of Supplies to North Africa ;

The Italian cruiser force is returning together with the 3rd
transport group according to plan.

5. Area Naval Group South ;
Nothing special to report.

6. Situation France ;

The Naval Staff has informed the German Armistice Commission,
France that it is out of the question that a German submarine sank the
French steamer P.L.M.20 at Sousse on 1 Mar. The Naval Staff believes
that there is no sense in pei.*mi c tlu& Preach cou.oyci unless the escort
forces are permitted to defend themselves against submarine attacks.
The German Naval Command, Italy has been asked to persuade the Italians
to take a similar stand. For details see War Diary, Part C, Vol. VIII.

VIII. Situation E a st Asia

1. Enemy Situation ;

News analysis no. 13/42 of the Naval Staff Intelligence Di-
vision, Foreign Navies Branch contains information on the Australian
naval and air base at Port Darwin.

According to the U.S. Navy Department, in the week of 6 Mar. U.S.
submarines operating in East Asiatic waters sank 1 Japanese destroyer
leader and 1 naval tanker, and scored 1 or 2 torpedo hits on 1 air-
craft carrier and 3 cruisers, in addition to successes earlier reported,

- 102 -

9 Mar. 19^2 CONFIDENTIAL

2. Situation Japan ;

Headquarters announced a surprise attack of the naval air
force on Pearl Harbor during the night of 4 Mar. Between 1 and 9 Mar,
Japanese fleet forces sank 52 ships totalling 210,000 GRT.

IX. Army Situation

1. Russian Front ;

Southern Army Group ;

Enemy attacks north of Taganrog were smashed. In the Slavyansk
area heavy fighting is raging around Cherkeskaya.

At the 6th Army 1 panzer division annihilated the enemy forces which had
advanced across the Donets toward Liman. Fierce fighting is in progress
at the point of penetration at Volchansk.

Central Army Group ;

Enemy forces have penetrated our lines south of Sukhinichi;
a counterattack is in progress. West of this area several attacks were
repulsed.

Blizzards and snowdrifts badly hampered operations in the sector of the
4th Army.

Northern Army Group ;

German armored forces advanced in the Lovat valley to the
south. The enemy is exerting strong pressure on our withdrawn positions
in the Pola and the Polomyet River valleys. South of Lyuban enemy
forces were mopped up. 5 enemy tanks succeeded in breaking through our
lines southeast of Maluksa.

2. Finnish and Norwegian Front ;
Some local combat activity.

3. North Africa ;

No reports have come in.

*************************

- 103 -

CONFIDENT I AL

11 Mar. 1942

I tens of Political Importance

France:

According to Reuter the French government consented to keep the U.S.
government Informed about th3 movements of French warships under the
condition that the U.S. continue shipping food and other supplies to
North Africa. Since these shipments were discontinued, France does not
consider herself bound to the agreement. In this connection Reuter is
of the opinion that the reason the French warships were sent from Dakar
to Madagascar is because Vichy is determined that Madagascar should not
become a Japanese base.

This statement by Reuter may be intended to prepare the
way for a British or American operation against Madagascar

Welles has stated that the U.S. stopped deliveries to North Africa be-
cause Vichy's replies to the U.S. requests for information were unsatis-
factory.

Great Britain :

Foreign Minister Eden spoke in the House of Commons about alleged in-
human treatment of prisoners of war and internees by the Japanese. He
said that Japan has refused the services of the Red Cross.

A survey by the Chancellor of the Exchequer shows that Great Britain
spent 5> 000, 000 pounds sterling per day in 19^0 for war purposes,
10,500,000 pounds per day in l<m, and 12,500,000 pounds per day in 1942.
Collections of money to build new ships and the national savings drive
are progressing satisfactorily. A member of the Labour Party stated
during the discussion that it does not make sense to spend millions to
build warships when no satisfactory explanation has as yet been given
about the sinking of the British battleships at Malaya.

According to a report from a diplomatic source, the British have set up
a new army in Iran and Iraq against unexpected German attacks via the
Caucasus. A British General St&fi eofaoission Bant co Tiflis and a
Russian commission sent to Bagdad have been withdrawn because of differ-
ences of opinion. The difficulties about the division of spheres of
influence in Iran continue. The British would like to establish them-
selves in Baku and set up a front there for the defense of Iran and
Iraq, but the Russians do not want to permit this.

In a U.S. magazine Cripps demands an offensive to relieve the Russians,
since it is not sufficient to help them only with war materiel. Russia
would probably like to establish the frontier of June 19^1, while the
present territories which Russia believes necessary for her security are
to be incorporated as autonomous republics. Stalin plans to defeat
Germany completely and to take Berlin. Otherwise Cripps repeats Stalin's
assurances that the Russians do not intend to interfere with the domestic
affairs of other countries, and that also in Germany they are striving
only to annihilate the Nazi regime.

India :

The main difficulty in the Indian problem seems to be that the Mohammed-
ans refuse categorically to accept any arrangement which would put the

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11 Mar. 19^2 CONFIDENTIAL

government of India in the hands of the Hindus. They demand therefore
that the northwestern provinces, which are predominantly Mohammedan,
should be excepted from the general plan and treated separately. They
have made it known in London that they would prefer delaying a decision
in the Indian question rather than getting an unsatisfactory decision
at once. Consequently the position of the Indian Minister Amery has
been strengthened, and even leaders of the Labour Party are tending to
delay a decision until after the war. However, Cripps and Attlee sup-
posedly have threatened to resign if this should be the case.

Switzerland ;

The progress of the war in the East has caused a noteworthy change in
opinion among many of the Swiss people in favor of Germany's mission to
save Europe from Bolshevism. This is borne out by the Swiss participa-
tion in the wool collection drive, which has to be done anonymously
considering the circumstances. Many people have even voiced the opinion
that Switzerland should enter the war as a defense against Bolshevism.
British prestige has suffered greatly in Switzerland.

Portugal:

The transport sent to Timor has been ordered to proceed to Goa. Salazar
refused London's offer to supply the transport in Australia.

Hungary ;

Bardossy's resignation can be explained by his negative attitude concern-
ing the selection of the deputy of the regent. Kallay has been asked to
form a new government, and will also fill the post of foreign minister
for the time being. The other ministers are the same as before. The
fact that the Honved minister is unchanged proves that there will be no
change in the military policy of the country.

Liberia :

The Firestone airfield and a base for hydroplanes at Cape Mount are
to be completed within 2 months. The Pan-American Airways has received
permission to cede its rights to the United States, but not to other
nations .

Japan :

On the occasion of the anniversary of the battle of Mukden, General Sato
stated that now is the time to finish off Great Britain in cooperation
with Germany and Italy, who will occupy Suez and Gibraltar in the near
future. Japan is prepared for every eventuality in the north. Great
Britain and the U.S. will have no opportunity to recover from their
losses in the southwest Pacific, because Germany and Italy are already
threatening to advance to Suez and further to the southeast, in order
to establish a junction with Japan via the Indian Ocean.

U.S.A. :

According to a press report, the decision to start the offensive against
the Axis powers was reached during a conference at the White House on
9 Mar., and the date was set. Litvinov, who is said to have participated
in the conference, repeated the urgent request of the Russian government
that a second front be opened before spring. A first step is the organ-
ization of a large U.S. fleet in European waters. The appointment of
Admiral Stark is interpreted in London as indicating that there will be
greater activity in the northern Atlantic, and that combined naval and

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11 Mar. 19^2 CONFIDENTIAL

land operations against Germany are being prepared. The U.S. War Depart-
ment has taken ateps to put younger officers on the General Staff, and
to give the air forces greater representation. Reuter states that the
U.S. ch artered the Italian steamer MONTE GRANDE and the German steamer
WINDHUX from Brazil.

Conference on the Situation with the Chief, Naval Staff

I. The Chief, Operations Branch, Naval Staff Operations Division re-
ports In connection with the Naval Staff's suggestion about submarine
operations in the Iceland-Hebrides area and In the Arctic Ocean (see
War Diary 9 Mar . , Submarine Warfare ) .

The Chief, Naval Staff agrees.

II. Tha. possibility of operations by the TIRPITZ Is discussed in viev
of the outcome of the operation against convoy PQ 12. The Chief of
Staff, Naval Staff repeats the basic principles laid down in War Diary,
10 Mar., Special Items II. The Chief, Naval Staff points out the limi-
tations of operations by heavy ships in the Arctic Ocean as a result of
Inadequate air support. The lack of an aircraft carrier is a real handi-
cap. The Chief, Naval Staff further believes that the TIRPITZ should
not remain in Narvik any length of time because of the great danger
from planes and because she might be blocked in. The Naval Staff is
ordered to arrange for an early transfer to Trondheim, and to order as
many submarines as possible to operate against British forces in the
area off the northern coast of Norway. It Is pointed out to the Air
Force that It is very important to combat enemy aircraft carriers in
that area. The Chief, Naval Staff will also inform the Commanding
Admiral, Group North of his views by telephone.

III. The final date when the GNEISENAU will be ready for transfer to
Gdynia cannot be set until 18 Mar. Provisional caulking of the bow
will probably be completed by 2k Mar.

IV. Group North reports that cruiser HIPPER cannot be transferred prior
to 16 Mar.

Situation 11 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation :

South Atlantic ;

According to the radio intercept service for the first time
it is evident that convoys are being assembled on the coast of Brazil.
Convoys seem to proceed from Trinidad as far as the latitude of Pernam-
buco, from which point the ships proceed separately.

The steamer QUEEN MARY had orders to leave Rio on 8 Mar., and was to
proceed to Capetown along approximately 3 2 * S via the Gough Islands.
The fact that she was ordered to make a wide detour to the south is
noteworthy. Escort is provided by planes, 4 destroyers, and 4 auxiliary
cruisers. Cruising speed: 21 knots.

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11 Mar. 19^2 CONFIDENTIAL

Auxiliary cruiser CILICIA arrived in Montevideo on 9 Mar. Auxiliary
cruiser BULOLO was again located in her last patrol area between 200 and
500 s, 300 and 40© w, where she seems to be taking turns with the
BIRMINGHAM. Ships located In the South Atlantic show that traf-
fic in that area is widely scattered.

14 transports with British troops arrived in Capetown between 9 and 15
Feb. U.S. cruiser INDIANAPOLIS arrived in Simons town on 13 Feb. The
Italians report that a large number of ships are being assembled in
South African harbors and they assume that these indicate preparations
for an attack on Madagascar. This assumption is not necessarily correct,
since these ships may belong to convoys to the Middle East. However,
the Italian assumption may be correct.

Indian Ocean:

According to press reports, the first large shipment of
Americans has arrived in Eritrea for the purpose of expanding the harbor
as a U.S. base.

2. Own Situation :

At 0000 on 12 Mar. the Naval Staff will take over the command
of the TANNENFELS. Radiogram 1725 informs the ship to this, effect.

Radiogram 1902 contains sailing orders for the TANNENFELS beginning at
30O w.

The following information is sent to the Naval Attache, Tokyo in reply
to the Japanese Inquiry concerning operation "Suedsee" (northeast pas-
sage): The Naval Staff is planning to go through with the operation,
but for technical reasons the operation will have to be postponed until
summer 1943. Preparations are continuing. At the proper time the opin-
ion of the Japanese will be welcome.

II. Situation West Area

1. Enemy Situation :

A submarine reported sighting smoke at 1715 in quadrant BE
7818 and destroyers in quadrant BE 7841, probably part of convoy OS 22,
on course 200O, speed 8 knots.

2. Own Situation :

Atlantic Coast :

Nothing to report.

Channel Coast :

During the night of 10 Mar. the 2nd PT Boat Flotilla operated
against a southbound convoy. One steamer of 3,000 and one steamer of
2,000 GRT were sunk by torpedo. Numerous motor gun boats and 2 destroy-
ers of the HUNT class participated in the defense. For brief report see
Telegram 1400.

See Telegram 1656 for the agreement between the General of the Air

- 107 -

11 Mar. 19*2 COHFHZ:~IAL

Force attached to the Commander In Chief, Navy, Group Vest, and the 3rd
Air Force concerning air cover during the transfer of catapult ship
SCHVABENLAND to Bremerhaven.

Air Situation ;

The Naval Staff is permitting the use of moored aerial mines
off the coast of Cornwall as requested by the Air Force; this area is
considered particularly promising.

For copy of the communication to the Commander in Chief, Air, Group
Vest, and the Commanding Admiral, Submarines see l/Skl 4849/42 Gkdos.
in Var Diary, Part C, Vol. V.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Ship "10" and her escort arrived in Flushing from Heligoland
according to plan.

Enemy planes were active over Rotterdam and caused some damage.

2. Norway ;

Enemy Situation ;

According to air reconnaissance, 25 steamers totalling approx-
imately 100,000 GRT were in Archangel, and 25 steamers totalling approx-
imately 60,000 GRT were in Molotovsk. There was some air activity in
the Bergen and Faroes area.

Own Situation ;

At 1320 submarine U "377" reported her position in quadrant
AB 6991. Fortunately the submarine is undamaged.

The reply to the Naval Staff's inquiry concerning submarine U "377"
(see Var Diary 8 Mar.) indicates that the Navy is not at fault, and
the Chief of Staff of the 5th Air Force personally assured thw Chief of
Staff of the Commanding Admiral, Norway that the fault lay with the Air
Force, which neglected to pass on information about the blocked area to
the Air Force commanders. (See Telegram 1150.)

In connection with plans for mine operations near the Rybachi Peninsula,
the Commanding Admiral, Norway reports the intention of the Admiral.
Arctic Ocean to lengthen the T, Bantos A" minefield. See l/Skl 5764/42
Glcdos. in Var Diary, Part C, Vol. Ila.

The Naval Staff agrees with the Admiral, Arctic Ocean.

In support of the request of the 5th Air Force that the air forces in
the Norwegian area be reinforced, Group North asks that the few torpedo
planes available to the Commander in Chief, Air be concentrated in that
area.

The Naval Staff considers it inadvisable to withdraw the few torpedo
planes from the Black Sea and the Mediterranean, and has asked the Naval

- 108 -

11 Mar. 19^2 CONFIDENTIAL

Liaison Officer to inform the Commander In Chief, Air to this effect;
the Commander in Chief, Air has been asked for his plans regarding the
use of torpedo planes in Norway.

According to the Naval Staff Quartermaster Division, the capacity of
the naval shipyard at Trondheim depends very much on the use of the re-
pair ship HUASCATAN. A torpedo shop, periscope shop, and communications
equipment maintenance shop are available only on the HUASCATAN. 12 sub-
marines and two high-pressure superheated steamships can be repaired si-
multaneously without the help of the repair ship only after the ship-
yard is fully completed. The machinery necessary for expanding the
shipyard Is supposed to be brought from the Kiel shipyard, but has not
arrived as yet.

This justifies fully the request made by Group North (see
War Diary, 8 Mar . ) .

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

Ship "23" will transfer to Swinemuende as soon as she leaves the ship-
yard.

The SCHLESIEN and her convoy is making very slow progress, and is at
present in the Gjedser Strait. The ice situation Is causing great dif-
ficulties. This is causing considerable delay In bringing ships to the
North Sea for transporting troops.

According to the Naval Staff Quartermaster Division, Antiaircraft Section,
the enemy air attacks on Kiel the nights of 25 and 26 Feb. were no dif-
ferent from earlier attacks, either as regards the number of planes
participating, or the method of attack. If anything, there were fewer
planes. Only part of the attacking planes reached the city proper dur-
ing both nights. Attack conditions, as always during the months of
January and February, were especially favorable because of the strong
contrast provided by the snow and the clear visibility.- Conditions for
defense were also not unfavorable.

The captains of the SCHARNHORST and the GNEISENAU are wrong in assuming
that the antiaircraft defenses of Kiel are far less adequate than those
of Brest. While Brest has a larger number of batteries (38 as compared
to 33), the area to be defended is smaller at Kiel, and the guns are
heavier. However there Is a shortage of radar equipment in Kiel, as is
the case in all bases defended by the Navy. A renewed request has been
made for allocation of such equipment. The assertion of the Air Force
that the Navy is to blame for the fact that the organization of the com-
bined night fighter area has not been set up is incorrect. On the con-
trary, the delays have occurred in the tasks which are the responsibility
of the Air Force. The Naval Shore Commander, West requested on 23 Feb.
that combined night fighter training be instituted; however this could
not be done since the night fighters in question had been sent to Norway
until 27 Feb. in connection with the transfer of the PRINZ EUGEN and the
S CHEER. Training was scheduled to begin on 1 Mar.

No smoke equipment was used at Kiel on purpose, because of the uncertain
consequences in case the enemy should use large numbers of incendiary
bombs in attacks on German cities. The available smoke screen detach-
ments have been stationed at Aasen Fjord. In the meantime the motorized
smoke screen detachment of the Air Force has been transferred to Kiel
from Brest. It will take at least 3 weeks to set up the necessary equip-

- 109 -

11 Mar. 1942 CONFIDENTIAL

ment. The Naval Staff Quartermaster Division, Antiaircraft Section is
skeptical about the use of smoke screens in Kiel. It remains to be seen
how it vill work out. Whenever ships have to spend some time in the
shipyard, the ammunition will have to be removed.

V. Merchant Shipping

Enemy shipping space (tonnage available as of 1 Jan. 1942; shipping
requirements): for maritime shipping and purposes of warfare the enemy
has 26,000,000 GRT at his disposal. At the present time he is usinc
about 6,700,000 of these for naval and military operations. This is
not sufficient for further operations, however, and the enemy will tem-
porarily have to draw upon supply ships or use the approximately
5,200,000 GRT which will probably become available as the result of the
disruption of imports to the U.S. from the Pacific and the Dutch East
Indies.

Britain and the U.S. are building 7,500,000 GRT of new ships during
1942, and these will further ease the situation. It is planned to build
approximately 8,800,000 GRT In 1943.

For details see report no. 5/42 of the foreign merchant shipping series
of the Naval Intelligence Division, Foreign Merchant Shipping Branch.

VI. Submarine Warfare

1. Enemy Situation ;

According to the radio intercept service the ILLUSTRIOUS was
at sea in the Greenock area. A submarine warning was issued for the
area approximately 110 miles west of the Hebrides.

According to an intelligence report from Portugal, a convoy consisting
of 34 ships, among them 4 large passenger steamers and 3 tankers, accom-
panied by 3 destroyers, were sighted on 6 Mar. approximately 200 miles
southeast of Sao Miguel (Azores) on northwesterly course, speed 10
knots. According to an Italian report, 3 British mine sweepers were
in Ponta Delgada on 8 and 9 Mar. One large British ship is supposedly
en route from the British Isles to Gibraltar.

An SSS signal was intercepted from the U.S. steamer PARISMINA (4,732
GRT) 180 miles north of Cape Hatteras. Another ship approximately 100
miles southeast of this cape also sent an SSS signal.

According to the radio intercept service, U.S. steamer TEXAN (7,005
GRT) and the British steamer DESTR0 (3,335 GRT) were torpedoed south-
west of the Windward Passage.

According to press reports, tanker GULF TRADE (6,776 GRT) and the
Brazilian steamer CAYRU (5,252 GRT) were torpedoed off the Atlantic
coast. The Brazilian steamer ARABUTAN sunk off Newport was formerly
the CALRERA and the SW0RDFISH.

2. Own Situation :

By order of the Chief, Naval Staff, the 8 submarines stationed

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11 Mar. 1942

CONFIDENTIAL

in the Scotland- Iceland area were put under the operational command of
Group North, effective at once, to operate against the enemy forces re-
ported in the Arctic Ocean and to safeguard the movements of the TIRPITZ.

Submarine U "593" established contact with a convoy of 14 steamers and

5 destroyersXin quadrant AM 2734 (west of the Hebrides). The submarine
was located and forced off.

Submarine U "432" sighted smoke and 1 destroyer on a 200Q course in
quadrant BE 7818, evidently a convoy with remote escort. She was unable
to maintain contact, since she was on her return voyage because of lack
of fuel.

Submarine U "162" did not find the OSORNO in quadrant CE 54, and she
turned back as ordered.

Submarine U "94" reported sinking a 6,000 GRT steamer off the U.S. coast
in quadrant CD 4498 on 7 Mar., and a 5,000 GRT steamer In quadrant CA
5489 on 11 Mar.

6 submarines are stationed in the Mediterranean off the Cyrenaica coast.

For details see supplementary situation report in War Diary, Part B,
Vol. IV.

Available submarines on 1 Mar. 1942

a.

Operational submarines ;

(previous month's figures in
parentheses)

b.

Type VII B:

7

VII C:

74

VII D:

1

IX B:

8

IX C:

19

and foreign submarines
Submarine Acceptance Command :

Type VII C

VII D

IX D

IX c

X B

XIV

:

34
3
2

12
1
3

Total:

111

(101)

Total

54

( 40)

c. In preparation and training for operations :

Type VII C: 36
VII D: 2

IX C: 10
X B: 2 Total

d. Training submarines :

Type II
VII
VII B
VII C
IX

40
4
4

7
2

Total

Grand Total

50

( 60)

57

lill

272

(258)

- Ill -

11 Mar. 1?42 CONFI AL

e. The fo l lowing submarines became reedy for operations In February :

Type VII C : 6

IX C: 6 Total: 12 (15)

f . The following submarines vere commissioned in February ;

pe VII C: 13

IXD2 : 1

DC C: 2 Total: 16 (15)

g. Reported missing In February ;

Type VII C: 2 (U "82" and U "581")

h. In March the following submarines will probably be commissioned :

Type VII C: 1*
UD2: 2
IX E: 4 Total: 20 (16)

Submarine mines :

With the introduction of the new rack mine type A the depths at which
submarines cannot lay mines have been confined to from J>G to 35 meters
(Heretofore it was 30 to 50 meters.)

VII. Aerial "Warfare

1. British Isles and Vicinity :

The attempt of the 5th Air Force to find the enemy force in
the northern part of the North Sea was unsuccessful. East of Dundee a
3,000 GRT steamer was badly damaged by a bomb.

2. Mediterranean Theater :

The Commanding General, Armed Forces, South reports that there
are Spitfires at Malta again, evidently brought there from Gibraltar by
task force H. Attacks on the Malta airfields continue.

Contact was made at 0850 off Derna with an enemy force of 4 cruisers,
6 destroyers, and 4 escort vessels, and was maintained the rest of the
day. After 2 futile attacks, a third attack by 25 Ju 88* s scored a
direct hit on 1 cruiser according to reports available so far.

On 3 Mar. 3 enemy submarines were attacked from the air (off Veggio ,
off Taranto, and off Piraeus).

The Commander in Chief, Air sends the following communication to the
Commanding General, Armed Forces, South; although it is very important
to attack the airfields on Malta, the Commanding General, Armed Forces,
South is requested not to neglect attacking the harbor installations
at Valletta, since this harbor Is vital for the supply of all ships and
the entire Island.

3. Eastern Front:

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11 Mar. 1942 CONFIDENTIAL

No special reports have been received.

VIII. Warfare in the Mediterranean

According. to Italian reports, the EAGLE and the ARGUS are scheduled to
depart for the Mediterranean very soon with 70 planes.

Air reconnaissance over Malta at 0915 showed that 1 cruiser and 1 de-
stroyer have left the harbor.

German air reconnaissance also located at 0850 a force consisting of 3
cruisers, 5 destroyers, 4 escort vessels, and 2 unidentified ships about
100 miles north of Varna on a lioo course. Contact was maintained during
the day until 1800. According to photo reconnaissance at 1800 the force
consisted at that time of 4 cruisers, 6 destroyers, and 3 escort vessels.
Since a force consisting of 3 cruisers and several destroyers had been
sighted on 10 Mar. north of Tobruk on westerly course, it may be assumed
that the small cruiser which left Malta met this force for transfer to
the eastern Mediterranean. For air attacks on this force see Air Situa-
tion, Mediterranean Theater. Submarines were sighted east of Tripoli
and southwest of Taranto. Radio intelligence intercepted a report from
British planes about a freighter on northerly course south of Cape Bon
(evidently a ship returning from Tripoli). Furthermore it was 4 estab-
lished that a British vessel off the North African coast evidently en-
countered an enemy plane or submarine at 2053*

2. Situation Italy :

The escort forces of the 4th transport group arrived in Taranto
the evening' of 10 Mar. The afternoon of 10 Mar. an enemy submarine was
pursued by 2 Italian PT Boats off Cape Spartivento; they were supposedly
successful.

3. Transport of Supplies to North Africa ;

The 4 empty steamers of the 3rd transport group arrived in
their ports of destination the morning of 11 Mar. Steamer MANARA, which
was torpedoed in 10 Mar. likewise reached the port of Palermo. Accord-
ing to an Italian report, steamer M0NTVIS0 was unsuccessfully attacked
by enemy submarines the morning of 10 Mar.

4. Area Naval Group South :
Aegean Sea :

Transports proceeded according to plan without interference.

Black Sea :

Enemy Situation :

According to air reconnaissance, there was lively ship traffic
in Sevastopol. 5 or 6 steamers or transport vessels were seen entering
and leaving. A cruiser which was outside the harbor with some merchant
ships laid a protective smoke screen.

Own Situation :

On 12 Mar. Rumanian destroyers are supposed to meet tankers

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11 Mar. 19^2 CONFIDENTIAL

ALBARO and PRODOMQS, which are coming from the Bosporus. Otherwise
nothing to report.

U. Situation East Asia

According to an official Japanese statement, U.S. cruiser MARBLEHEAD

was sunk. The Military Attache at Bangkok reported that there are supply

difficulties in the combat zone north of Rangoon because of bad roads.

Japanese losses published so far amount to 3,200 dead and 6,000 wounded.
The Japanese army air force has lost k0$ of its planes so far.

Mopping up operations on Sumatra, Borneo, and Celebes are practically
completed. The Japanese were able to advance so rapidly on Java because
the enemy air forces were smashed so quickly and completely.

I. Army Situation

1. Russian Front :

Southern Army Group :

The enemy is resuming the offensive on the Sevastopol front.
Attacks on the center of our front were repulsed. Heavy enemy concen-
trations on the northern part of the Feodosiya front were combatted.

Enemy attacks against the Von Kleist Army Group were repulsed north of
Taganrog, west of Slavyansk, and east of Barvenkovo. Enemy pressure is
continuing on the southern flank of the 6th Army at Orel. Enemy pressure
was particularly noticeable at Volchansk, where 5 enemy divisions were
brought up. A tank attack is in progress.

Central Army Group :

Unsuccessful enemy tank attacks took place south of Sukhinichi.
Other enemy attacks on the highway northeast of Demenskoye and northwest
of Yukhnov were repulsed. The supply route south of Byeloi has been
blocked by the enemy. Blizzards and snow drifts are greatly interfering
with the fighting.

Northern Army Group :

An enemy attack was repulsed southwest of Kholm and east of
Molvotitsy. The attacks in the Pola and the Polomyet valleys are con-
tinuing. Also at Staraya Russa and at the positions along the railroad
south of Maluksa enemy attacks were brought to a standstill.

2. Finnish and Norwegian Front :
No special Incidents. *

3. North Africa :
Situation unchanged.

- 114 -

CONFIDEHTIAL

12 Mar. 19*2

Items of Political Importance ;

France:

For a report from a diplomatic source about Franco-American relations
see Political Review No. 60, paragraph 1.

According to the official German news agency (DNB) Vichy has denied all
reports that negotiations are in progress between Japan and France
about a possible combined defense of Madagascar.

Great Britain :

According to Churchill's talk on India (see Political Review No. 60,
paragraph 2a), the British government has made decisions which go beyond
that reached in August 19^0 (dominion status for India depending on
Indian internal harmony). These decisions will not be made known and
Indian self-government will not be proclaimed until a member of the
government has investigated on the spot whether a just and practical
solution would be accepted. For this purpose Cripps is being sent to
India. In the meantime the problem is not to be discussed publicly in
Britain or in India.

The Food Minister announced new severe cuts.

Finland:

The legation reports that the U.S. has made new attempts to intimidate
Finland, threatening to land U.S. troops in the north and to engage in
armed conflict. While some importance is attached by the Finnish Foreign
Ministry to the possibility of a landing in northern Europe, it is
doubted that it will actually take place in view of the difficulties in-
volved in transporting and supplying an army of 200,000 men. The whole
thing may be a bluff to cause Germany to take far-reaching defense mea-
sures which would benefit other theaters and might lead to a German-
Swedish conflict. This would be disastrous for Finland, since Marshal
Mannerheim would then turn away from Germany and Finland would collapse.

U.S.A. :

In Roosevelt's message to Congress about the first year of Lead-Lease,
the transport situation 1b pointed out as the most difficult problem .
For details see Political Review No. 60, paragraph 4.

Brazil :

The government has ordered that all Brazilian ships en route to the U.S.
turn back, and that no further ships be permitted to leave for that
country.

It is expected that German property will be confiscated in the near
future .

According to press reports, war with the Axis powers will be declared
soon. All ships at sea have received orders to put into the nearest
ports, and a state of siege has already been declared.

Liberia :

The U.S. has asked permission to land troops and war materiel to protect

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12 Mar. 19^2 CONFIDENTIAL

U.3. air bases in Liberia.

Japan ;

According to Done! a spokesman of the information office stated that
the fate of the Dutch East Indies is in store for Australia unless she
changes her attitude. Australia's conduct will determine vhether she
will be treated like the Philippines and Malaya If and when a separate
peace is negotiated with the approval of the Axis powers.

General Sato, spokesman for the Army, states that Japan is prepared for
a long war of attrition. After the U.S. has completed rearming in
about 2 or 3 years the Allies will take more decisive action, and it is
not known whether the attack will be launched from the north or the
south. After the war of attrition has gone on for some time, heavy
fighting which will decide the war will ensue. Believing the present
war unavoidable, Japan never used more than 40# of her forces and 20#
of her industrial capacity for the war with China.

Special Items

I. Survey of the Situation in Norway by the Naval Staff ;

The TIRPITZ set out on the operation in the Arctic Ocean when planes
reported sighting a convoy near Jan Mayen (15 ships en route to Russia).
The Naval Staff believes that in such cases it is absolutely necessary
to have a task force available which can be sent out, so that the task
of cutting off enemy supplies to Russia can be fulfilled, and enemy
landings prevented.

The TIRPITZ did not intercept the convoy; the enemy force evidently
changed course when the German planes were detected. In anticipation
of an operation by the TIRPITZ, the enemy had sent out a heavy carrier
task force. In spite of daring torpedo plane attacks, the enemy was
unsuccessful, due to pure luck as well as to skillful maneuvering.

Conclusion s; The operation shows our weakness In the northern area.
The enemy "reacts to every German thrust by sending out strong task
forces, particularly aircraft carriers, which must be considered the
most dangerous opponents of our heavy ships. It is indicative of our
extremely weak defenses that the enemy dares to approach the coastal
waters in the northern area, without being annihilated by the German
Air Force. Our escort forces are so few (destroyers and torpedo boats)
that our ships are always hard pressed during air attacks and other
encounters.

Other observations about the conduct of the enemy ; The enemy is very
skillful ; enemy radio traffic gives no indication of operations;
enemy planes are expert at maintaining contact; ruthless, daring at-
tacks by torpedo planes; enemy submarine tactics are correct; absolute
control over the commitment of enemy forces, as well as flexible guid-
ance of convoys (they change course as soon as sighted); excellent co-
operation between enemy naval and air forces during operations.

The following conclusions may therefore be drawn ;

a. Support by strong air forces from the Norway area is essential
for successful operations in the Arctic Ocean, in the absence of air-
craft carriers (reconnaissance, bomber, and torpedo planes).

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12 Mar. 1942 CONFIDENTIAL

b. Every operation in the Arctic Ocean will mean an all-out
effort for our ships, in view of the enemy's determined reaction; this
holds true particularly when enemy carriers are involved.

c. Therefore our naval forces should he kept back for the present
so that they will be ready to ward off enemy landing operations. They
should be sent out only when definite information is available about
enemy ships, and the Air Force can provide sufficient support.

d. We must demand categorically that the Air Force attack enemy
aircraft carriers whenever they are within reach. It must be the prime
aim of the Air Force In connection with naval warfare in the northern
area to annihilate enemy aircraft carriers at sea and in their bases.

If enemy aircraft carriers were eliminated, German operational possibil-
ities would be fundamentally improved.

e. We must demand that construction of our aircraft carrier be
accelerated. This includes providing sufficient carrier planes. Every
effort must be made to organize a German task force consisting of the
TIRPITZ, the SCHARNHORST, an aircraft carrier, 2 heavy cruisers, and 12
to 14 destroyers. Such a force would be a grave threat to the enemy in
the northern area, and could engage in very effective operations.

The above considerations were laid down on 11 Mar., and were briefly
presented to the Chief, Naval Staff during the conference on the situa-
tion.

The Chief, Naval Staff will make use of them during his conference with
the Fuehrer today.

II. For the opinion of the Naval Staff concerning naval operations for
defense against enemy landing operations in Norway see l/Skl I b 588/42
Gkdos. Chefs, in War Diary, Part C, Vol. Ila.

In accordance with the Fuehrer's request, this opinion will also be
presented to the Fuehrer during today's conference.

III. For a collection of detailed maps for the Rybachi Peninsula area
in connection with landing plans, see War Diary, Part C, Vol. Ila, files
"Fischerhalbinsel".

IV. After the report by the German Admiral, Rome, the Commanding General,
Armed Forces, South, Field Marshal Kesselring asked the Commander in
Chief, Navy on 10 Mar. to postpone withdrawing the PT boats from Malta
operations until the end of air operations against Malta, which are to
begin the middle of March, since the lasting effect of the overall of-
fensive would be jeopardized if mine operations of the PT boats were
discontinued, and the Italian Navy cannot be relied upon to carry out
their part of the mine operations. Kesselring requested 3 to 4 weeks
delay.

In reply the Chief, Naval Staff states that he believes temporary sur-
prise attacks by PT boats on supply traffic along the North African
coast would be very profitable, and he points out that these supplies
also affect Malta. In any case Kesselring' s request will be complied
with due to the fact that the necessary preparations will take 2 to 3
weeks. The date of the transfer of the PT boats will then be set in
agreement with Kesselring.

For copy of the corresponding telegram see l/Skl I a 567/42 Gkdos.
Chefs, in War Diary, Part C, Vol. XIV.

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12 Mar. 19^2 C0NFID5NTIAL

V. The General of the Fighter Planes reported about the operations of
the fighters and long-range fighters covering the battleships during the
break through the Channel on 12 Feb. He pointed out the advantages In
having the 3rd Air Force in charge during the entire operation regard-
less of the territory involved.

Forces which took part :

7 fighter groups

1 fighter squadron

2 long-range fighter groups less one squadron
1 bomber group In case the veather should not permit operations by

fighters and long-range fighters.

Forces were concentrated in 2 areas ;

1. The area of Dunkirk, 3t. Omer, and Abbeville

2. The area of Katwijk, Shiphol, Woensdrecht, and Maldegem

Communications worked well. The fact that the Commander, Fighters was
aboard the flag ship proved of great importance to the Commanding
Admiral, Battleships, as regards information on the air situation.

Total forces committed :

2o0 planes for close escort
140 planes for remote escort

The remote escort, which were on the offensive and therefore less re-
stricted in their action, shot down more planes than the close escort.

Successes and losses :

26 enemy planes were shot down for certain, 14 probably.
1 Me 109 and 3 FW 190' s were lost.

The experiences gained have been incorporated by the General of the
Fighter Planes in a uniform directive for the escort of convoys and
naval vessels in the entire area of the west coasts, including Norway.
The directive has been submitted to the Naval Staff.

The Naval Staff fully agrees with the favorable opinion
of the General of the Fighter Planes concerning coopera-
tion with the Navy in this operation.

VI. Referring tc the Naval Staff memorandum of 4 Mar., the Chief of
Staff, Armed Forces High Command points out that some time ago the
Fuehrer forbade sending situation analyses, even by, the Armed Forces
High Command, to the Foreign Office, except for a definite naval or
military purpose, in which case it must be approved by the Fuehrer.
The Chief of Staff, Armed Forces High Command states that this applies
particularly to the Naval High Command, which is in a position to eval-
uate the overall situation purely from the standpoint of naval warfare.
The Fuehrer is of the opinion that it is not the business of the Foreign
Office to draw military conclusions from the various opinions of the
branches of the Armed Forces; that is up to the Armed Forces High
Command. The Foreign Office is supposed simply to draw political con-
clusions from the Fuehrer's decisions on military and naval matters.

The Chief of Staff, Armed Forces High Command asks that this be kept in
mind when memoranda are distributed in the future.

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12 Mar. 19^2 CONFIDENTIAL

The Naval Staff makes no claim to judging matters not
pertaining to naval varfare. In the present case, how-
ever, the overall problem is made up of so many questions
which are entirely the responsibility of the Navy that
the Naval Staff does not believe the reproach of being
unable to evaluate the situation accurately is in any
vay applicable.

It is quite another question whether it might help the
Fuehrer, who is not only the Supreme Commander of the
Armed Forces, but also the political leader, to make his
military decisions if the Foreign Office is aware before-
hand of matters which are of as great political as of
military consequence. The Naval Staff does not believe
that the above ruling of the Fuehrer was meant to be as
basic as it has been interpreted by the Chief of Staff,
Armed Forces High Command.

Furthermore the Naval Staff was of the opinion that the
Foreign Minister, who is the chairman of the permanent
committee of the Tri-Partite Commission, should partici-
pate in the present matter, which affects Japan and Italy
as much as Germany.

VII. The report of Group North about the operation of the Commanding
Admiral, Battleships of_b to 9 Mar, describes the progress of the oper-
ation, which the Naval Staff had approved dh 6 Mar. at the suggestion
of the Group. The Group had believed the situation favorable for an at-
tack by the Commanding Admiral, Battleships, even though it assumed
that convoy PQ 12 was escorted by heavy forces, possibly including an
aircraft carrier. The 5th Air Force had readily agreed to carry out
far-reaching reconnaissance and escort operations.

The OU (operation urgent) radio messages intercepted on 7 and 8 Mar.
were judged normal, considering the source. On the evening of 8 Mar.
the Group was still under the impression that the enemy was not fully
aware of the operation. Furthermore, the Group did not believe that
the TIRPITZ task force would be endangered even if it encountered fast,
strong enemy forces relatively close to the coast. Therefore it was
left to the discretion of the Commanding Admiral, Battleships to con-
tinue the operation on 9 Mar. until dark as originally planned, under
the assumption that the destroyers which had been released for refuel-
ing would rejoin the force on 9 Mar. The Group assumes that the mes-
sage permitting the Commanding Admiral, Battleships to continue the op-
eration at his discretion crossed the latter 's message concerning plans
for 9 Mar. When at 2300 the decision of the Commanding Admiral, Battle-
ships arrived, stating that he was planning to break off the operation
on the evening of 8 Mar., the Group made the necessary arrangements.
On 9 Mar. the Group approved his decision to proceed to the Vest Fjord,
and likewise in the afternoon approved his plan to proceed to Trondheim
•during the night. The reasons are given in the War Diary. On the
basis of further developments in the enemy situation, which was still
unclear, the Group gave orders in the afternoon for the TIRPITZ to re-
main in Narvik for the time being.

The Group did not receive the reports that heavy enemy forces were
sighted at 1115 in quadrant AF 2656 until 1815. The 5th Air Force,
which used all available bombers against the enemy, had only 6 planes
at its disposal, 2 of which unsuccessfully attacked. No torpedo planes
were available.

In commenting on the report of the Commanding Admiral, Battleships , the

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12 Mar. 19^2 CONFIDENTIAL

Grout esses regret that the destroyers did not refuel at night. as

been intended in the operations order in order to provide better
escort and greater range for the task force. The Group believes that
the fact that the destroyers proceeded to Norwegian harbors jeopardized
the secrecy of the vhereabouts of the battleship. The Group approves the
decision of the Commanding Admiral, Battleships on 8 Mar. about the fur-
ther | f the operation, and stresses his statement concerning
inadequate air reconnaissance and escort. The 5th Air Force, to be
sure, complied most i gly with all requests of the Group; actually,
however, only very few planes participated in the operation at any one
time, partly because of the weather, and partly because of plane short-
age. The Group states quite correctly that this situation can be rem-
edied only by reinforcing the Air Force in Norway and expanding the
ground organization. The reporting methods of the operational Air Force
and the complicated radio communications, with numerous reconnaissance
wavelengths, are unsuitable for an operation of this type. In spite of
the best intentions by the 5th Air Force Command, it was obvious that
at no time during the operation was the Air Force anywhere nearly equal
to the requirements for reconnaissance and attack, nor was it at all
comparable to the enemy air force. The grotesque situation arose that [

the enemy was able to chase us out of our own coastal waters, and to
operate there himself unhampered. An aircraft carrier would have been
most helpful both in searching for the convoy and in preventing surprise
attacks .

With reference to the request of the Commanding Admiral, Battleships
that the stipulations of the operational order pertaining to an encounter
with an enemy force of equal strength be changed, the Group points out
that the usual enemy task force is superior, but that the usual old bat-
tleship escorting convoys provides a good target for the TIRPITZ, even
though the guns of both ships are of the same caliber. The decision to
proceed to the Vest Fjord is approved. The Group expresses warm ap-
preciation of the skill in evading aerial and submarine torpedoes, as
well as of the operations by the ship planes and the J> or 4 enemy planes
shot down.

In summary the Group concludes as follows:

1. The operation did not have the desired success presumably for these
reasons :

a. It was impossible to locate the convoy; it is likely that
the convoy turned back on 5 Mar. immediately after it was sighted by
the plane or after the Russian steamer sent the RRR signal, or that it
was delayed.

b. The time spent in searching was very short, and the number of
ships engaged in the search was very small, particularly the second
day.

c. Air reconnaissance did not supply the necessary accurate in-
formation.

2. This experience does not change the basic fact that it is correct
for the Norway forces to attack profitable targets reported en route to
Murmansk. It has become evident, however, that the air forces in the
area will have to be reinforced for this purpose, and the Air Force
personnel will have to have a better understanding of the tasks of naval
warfare .

3. The risk involved in any operation in the arctic area is great.

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12 Mar. 19^2 CONFIDENTIAL

Therefore only profitable targets should be attacked, and for this pur-
pose the stipulations set forth under 2. must be complied with. Other-
wise the risk is out of proportion to the chances for success.

The Naval Staff is basically in full agreement with
Group North, and welcomes especially the statement made
under 2. concerning the idea which prompted this opera-
tion. The Naval Staff will subsequently state its opin-
ion as well as the conclusions to be drawn from this op-
eration. (See also Special Items, I.)

VIII. The Naval Staff sent a report to the Chief, Naval Staff at Fuehrer
Headquarters containing an extract of the reports of the Commanding
Admiral, Battleships (see War Diary 10 Mar.) and Group North, with
special emphasis on the problem of inadequate air support. The conclud-
ing statement of Group North was transmitted in full. The Chief, Naval
Staff unfortunately did not receive these materials before his confer-
ence with the Fuehrer. The Naval Adjutant of the Fuehrer has been in-
structed, however, to give the Fuehrer this information in connection
with the report of the Chief, Naval Staff.

The Chief, Naval Staff is at Headquarters for a conference with the
Fuehrer .

For minutes of the conference see l/Skl I b 588/42 Gkdos. Chefs, in
War Diary, Part C, Vol. VII.

Special attention should be given to the Fuehrer's decisions regarding
the repair and rearmament of the GNEISENAU, continued construction of
the aircraft carrier GRAF ZEPPELIN, as well as preparation of the neces-
sary carrier planes.

Situation 12 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation ;

North Atlantic ;

According to Reuter a British contingent landed in Nassau in
the Bahamas .

South Atlantic ;

The cruiser DELHI left Freetown on 9 Feb. with a northbound
convoy of about 20 steamers. It is said that a number of ships coming
from South America generally join the northbound convoys in the latitude
of Bathurst. The cruiser KENYA entered Freetown on 11 Feb.

A U.S. force evidently arrived in the Cape area on 12 Mar.

Pacific Ocean ;

According to an agent report from the end of February, a

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12 Mar. 19^2 CONFIDENTIAL

considerable number of grain transports sail unescorted from Australia.
The route to the South African harbors is secured by the patrol service.

2 U.S. destroyers, 3 submarines, and 5 ore steamers entered Coquimbo
(Chile) on 5 Mar.

2. Ovn Situation ;

No reports have been received from German ships in foreign
waters.

Radiogram 1752 contains sailing orders for the OSORNO, including infor-
mation about the ship's rendezvous with German minesweepers; port of
destination Bordeaux.

All ships in foreign waters are informed about political event" and
enemy reports by Radiograms 15^3, 0648, 1110, 1427, 1626, and 2029.

II. Situation West Area

1. Enemy Situation :

5 British vessels were located during the afternoon near
Portsmouth.

2. Own Situation :

Atlantic Coast :

Radiogram 1752 informs Group West about the orders to the
OSORNO.

Ship "28" is ordered to transfer from Flushing to Bordeaux.

Air reconnaissance failed to locate the OSORNO.

Channel Coast :

Numerous enemy planes flew over the Dunkirk and Le Havre
areas during the day. Several harbor patrol vessels were slightly
damaged and suffered casualties.

Ship "28" departed from Flushing. In accordance with the request of
the Naval Staff, the Commander in Chief, Air has ordered the 3rd Air
Force to locate and then launch massed surprise attacks on the enemy's
PT boat bases. (See Telegram 1205.)

III. North Sea, Norway, Arctic Ocean

1. North Sea :

The 5th Coast Patrol Force was organized in Cuxhaven. Two
British officers, who landed in rowboats near Katwijk, were captured.
They were evidently planning to commit acts of sabotage.

2. Norway :

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12 Mar. 1942 CONFIDENTIAL

Enemy Situation ;

Submarine U "45V reported a convoy consisting of 10 steamers,
4 destroyers, and 2 escort vessels on a 1700 course in quadrant AC 8557
at 1000. According to air reconnaissance, 6 northbound destroyers with
fighter escort vere in quadrant AP 7286 at 1150; 4 destroyers and 4
escort vessels on easterly course in quadrant AF 2785 at 1520; and un-
identified ships which put up a heavy anti-aircraft barrage in quadrant
AF 8413 at 1830.

According to a report of the British Admiralty, British naval forces
were unable to establish contact with the TIRPITZ which had been seen
by reconnaissance planes proceeding north. Nothing has been ascertained
as to the effects of the aerial torpedo attack of the morning of 9 Mar.
Two British planes failed to return from this mission.

In evaluating the enemy situation, Group North believes that an enemy
carrier force might attack Narvik the morning of 13 Mar. The enemy
force located in quadrant AF 5115 indicates that a mining operation is
in progress, aimed at the Vest Fjord or the approaches to Trondheim.
It may be assumed that a heavy enemy task force is at sea, possibly the
unidentified ships reported, as flanking protection for the mine-laying
forces.

Own Situation :

In view of the enemy situation, Group North requests the
Commanding Admiral, Submarines to inform the submarines in the Shetland
and Iceland area that the Group believes there are enemy carrier and
cruiser forces in the vicinity of quadrant AF 7297 and that they should
take up the following positions: in quadrants AE 99; AF 78 and 79;
AE 93; and in the area between AF 7450, 71 80, 7270, and 7540.

Convoy and supply operations are proceeding according to plan.

At 1525 submarine TJ "454" lost contact with the enemy convoy.

In view of the difference in the number of ships reported
it is not clear whether this convoy was PQ 12, which we
are looking for. However, this would seem to be the
case. Otherwise the convoy would have had to cross the
operations area of the Commanding Admiral, Battleships
undetected, unless, contrary to our assumption, there is
an ice-free route north of Bear Island.

In view of recurring reports, the Commanding General, Armed Forces,
Norway and the 5th Air Force expect an enemy operation in force against
the Banak airfield south of the Porsanger Fjord and request that the
coastal artillery positions in the Porsanger Fjord be reinforced by a
minefield. The Commanding Admiral, Norway suggests that a 2-row shallow
minefield be laid between Hovnholm Island and the east shore of the
fjord, within the range of the naval guns. This would not interfere
with the movements of our naval and merchant vessels, since there is
an easily navigable passage west of Hovnholm. See 1/Skl 5870/42 Gkdos,
in War Diary, Part C, Vol. Ila.

The Commanding Admiral, Norway will spend the period 12 to 23 Mar. in
northern Norway.

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12 Mar. 1942

CONFIDENTIAL

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation :

According to an agent report from Stockholm, the Russians
have asked for British anti-aircraft guns to be sent at once in order
to protect the important Kyera railroad bridge at 65° N, 34o 38' E.
According to the same report, which originates in the British Legation
in Stockholm, British air attacks are shortly to be extended from Paris
to all of France, Belgium and Holland, in order to simulate a British
landing in this area and cause German troops to be diverted from other
f ronts .

2. Own Situation :

The SCHLESIEN and her convoy are still frozen fast in the
Gjedser Strait. Other icebreaker movements without incidents. Enemy
planes attacked Kiel during the night of 12 Mar. No detailed reports
have as yet been received.

V.

Submarine Warfare

1. Enemy Situation :

The radio intercept service reports that a plane attacked a
submarine north of Rockall Bank at noon, supposedly successfully.
British vessels were located 150 miles southwest of Lisbon and 210 miles
southwest of Porcupine Bank.

U.S. steamer MARJORY reported sighting a submarine off Cape Hatteras.

U.S. steamer HELEN (3,129 GRT) was torpedoed in the vicinity of the
Bahamas . The radio intercept service further reports that tanker
EULIMA (6,207 GRT) was torpedoed on 21 Feb. approximately 300 miles
south of Cape Race, Norwegian steamer HAVOERN (1,527 GRT) on 19 Jan.
southwest of Cape Race, Greek steamer MEROPI (4, 181 GRT) on 15 Feb.
southeast of Halifax, and Norwegian steamer EGDA (10,000 GRT) on 21
Feb. approximately 320 miles south of Cape Race.

According to figures compiled by the Naval Intelligence Division, For-
eign Merchant Marine Branch, the following enemy ships were sunk by
German submarines during January and February 1942 off the U.S. East
Coast:

In the Atlantic
In coastal traffic
In the Caribbean

2.

Total

Own Situation:

37 steamers and 14 tankers totalling 318,931 GRT

16 steamers and 14 tankers totalling 208,150 GRT

4 steamers and 13 tankers totalling 99,633 GRT

98 vessels totalling 626,714 GRT

The attempt by submarine U "454" to lead other submarines to
the convoy sighted in quadrant AC 8557 by means of direction finder
signals was unsuccessful. Submarines U T, 701", "135", "569", and "553"
in the area east of Northern Scotland and Iceland have been organized
into the York group in order to carry out the directive of Group North.

Submarine U "593" in the North Atlantic reported that a red searchlight

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12 Mar. 1942 CONFIDENTIAL

was successfully used as a location device while she was maintaining
contact with a convoy in quadrant AM 27.

Submarine U "155" reported sinking a 6,000 GRT steamer off the U.S.
coast on 7 Mar. This submarine as well as U "578" reported encountering
a submarine trap. There is no definite proof, however. Lt. Lehmann-
Willenbrock of submarine U "96" reported sinking steamer TYR, thus
raising his total to 29,101 GRT. On 9 Mar. submarine U "94" sank a
Brazilian steamer which was proceeding on zigzag course, without lights,
en route to New York. This was probably the CAYRU (5,123 GRT), No
special reports have been received from the submarines stationed in the
West Indies or the South Atlantic.

In the Mediterranean submarine U "565" (Lt. j.g. Jebsen) fired a four-
fan at a cruiser of the LEANDER class east of Solium Bay, probably
scoring 2 hits. 30 to 40 minutes after the fan was fired noises like
those from a sinking ship were heard (breaking bulkheads, etc.). The
sinking could not be confirmed because the submarine was pursued with
depth bombs for 4 hours. Submarine TJ "371" established contact with
the enemy force northeast of Ras Azzaz (see War Diary 11 Mar.) but lost
it 5 hours later. For supplementary report on the situation see War
Diary, Part B, Vol. IV.

The Naval Staff has examined the planned submarine positions in the area
west of Scotland and Iceland. Positions in the Immediate vicinity of
the coast are not very promising as regards ships approaching the British
Isles from the Atlantic. Experience has shown that submarinesj are most
successful if used in sufficient numbers against enemy shipping to
Murmansk and Archangel. A directive is sent to Group North; the Com-
manding Admiral, Submarines; the Commanding Admiral, Norway; and the
Admiral, Arctic Ocean to place 4 of the 8 submarines stationed in the
area of Northern Scotland and Iceland under the operational command of
Group North (the Commanding Admiral, Norway) for operations against
enemy shipping on the PQ convoy routes and at the ports of destination;
and to station the other 4 submarines approximately in the area of Jan
Mayen and east of Iceland and Northern Scotland for operations against
enemy shipping outside the enemy's harbors. Bases for the first 4 boats
are to be northern Norway, Trondheim or Bergen, possibly Germany; for
the other 4, ports in western France. See l/Skl I u 575/42 Gkdos Chefs.
For a copy of this telegram as well as the instructions to the Naval
Staff Submarine Division and the Naval Staff Quartermaster Division con-
cerning preparation of repair and supply facilities for the present
total of 16 submarines now in northern Norway, including Trondheim and
Bergen, see War Diary, Part C, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity ;

For reconnaissance activity over the North Sea area see
Enemy Situation, Norway.

A FW 200 carried out a bomb attack on the British steamer LEADGATE in
the Bay of Cadiz; the steamer was probably damaged.

30 to 40 enemy planes were active during the night of 12 Mar. Attacks
concentrated on Kiel, involving 28 to 30 planes.

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12 Mar. 1942 CONFIDENTIAL

2. Mediterranean Theater :

The Italian Air Force reports attacking an enemy force of 14
vessels northeast of Tobruk on 11 Mar.; it is certain that a direct
hit on a medium- sized cruiser by aerial torpedo was seored. When the
attack was repeated 2 more cruisers are reported to have been hit, one
of which listed heavily. The 29 German bombers and dive bombers which
attacked the same force scored only one SC 250 hit on a light cruiser.
This is the force which had made a thrust to the west from Alexandria
in order to meet the Malta cruiser.

Attacks on the Malta airfields were continued. 15 Spitfires were ob-
served over the island.

The number of planes on the enemy airfields In eastern Cyrenaica and
in Libya has increased. 225 planes were counted on 13 airfields.

3. Eastern Front ;

Aerial torpedoes failed to hit the target during attacks on a
floating dock at Novorossisk and on a naval vessel.

VII. Warfare in the Mediterranean

1. Enemy Situation ;

An additional 3 submarines were located in Valletta. German
and Italian reconnaissance planes spotted a few light naval vessels be-
tween Alexandria and Tobruk, among them 6 undefined vessels on easterly
course east-northeast of Tobruk.

According to an intelligence report, 10 transports, 2 cruisers, 10 tor-
pedo boats, 5 submarines, and 6 tankers arrived at Haifa from North
Africa on 10 Mar. in order to refuel.

The German Naval Command, Italy transmitted a list of the names of
British naval vessels which were sunk in the Mediterranean by Italian
naval forces up to 1 Jan. 1942. The list includes 6 cruisers, among them
the NEPTUNE which hit a German mine, and the FIJI which according to a
British statement was sunk by a German plane; 1 fast minelayer; 10
flotilla leaders and destroyers, one of which, the DAINTY, was sunk by
a Ju 88 according to prisoner statements; 22 submarines; 5 auxiliary
vessels; and a total of 24 merchant ships, including 7 tankers.

2. Situation Italy ;

German and Italian planes, as well as 1 German submarine,
attacked the naval force sighted south of Crete on 11 Mar. (see Aerial
Warfare and Submarine Warfare). If the reports are true, one cruiser
was sunk by the German submarine, Italian planes scored hits on 3
cruisers, and German planes on 1 cruiser. This would mean that all 4
cruisers. Including the one coming from Malta, were at least damaged.

According to a compilation by the Naval Staff Intelligence Division,
the Italian Navy lost the following ships between 10 Jun. 1940 and 15
Mar. 1942: 1 battleship, 4 heavy cruisers, 4 light cruisers, 22 de-
stroyers, 18 torpedo boats, 45 submarines; a total of 94 vessels.

Among these are the battleship CAV0UR, heavy cruisers SAN GIORGIO, ZARA,

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12 Mar. 19^2 CONFIDENTIAL

FIUME, and POLA, light cruisers DIAZ, COLLEONI, GIUSSANO, and DA BARBIANO

3. Transport of Supplies to North Africa ;

No particular incidents.

The Naval Staff requested information concerning the inadequacy
of the African harbors and the possibility of transferring tonnage for
the purpose of carrying supplies to Greece (see War Diary 5 Mar.); the
German Naval Command, Italy replies that the unfavorable report as to
the capacity of the unloading harbors was not meant for Africa in gen-
eral, but only for Cyrenaica. In the meantime the capacity of these
harbors, particularly of Benghazi, has been Improved, so that this
bottleneck will become less and less serious in the near future. The
German Naval Command, Italy does not consider it advisable to transfer
Bhips to the Aegean Sea, so long as we must count on attacks by Malta
cruisers and destroyers and by submarines and planes on our Africa con-
voys. Our steamer tonnage was reduced by the loss of the steamers CUMA
and MARINE SANUDO on 2k Feb. Up to now the Italians have definitely
refused to contribute Italian steamers for the Aegean, since their ton-
nage is fully occupied in supply traffic to Tripoli and Cyrenaica.

With this information we can consider this question
settled.

4. Area Naval Group South ;
Aegean Sea ;

Enemy Situation ;

Submarines were located off Piraeus and in the Gulf of
Salonika, as well as west of Euboea.

Own Situation ;

PT boats are combatting the enemy submarines off Piraeus.
West of Euboea an enemy submarine which attacked a sailboat with gunfire
was forced to submerge by a German seaplane. 2 planes and a harbor
vessel set out after the submarine.

The auxiliary cruiser BARLETTA is en route to Salonika, where she is to
be loaded for a mine operation.

Increased escort protection was provided by 2 torpedo boats, 2 PT boats,
and 2 subchasers. The naval barges TARABYA and CAVALLA which left
Varna on 10 Mar. passed Constantinople on 11 Mar. in the direction of
the Dardanelles. The naval barges were camouflaged as far as possible.

Black Sea ;

Enemy Situation ;

According to air reconnaissance there was a floating dock in
tow between Anapa and Novorossisk on a southeasterly course, escorted
by destroyers, torpedo boats, and fighter planes. For an unsuccessful
aerial torpedo attack see Air Situation.

Own Situation ;

No particular incidents.

- 127 -

12 Mar. 19^2 CONFIDENTIAL

The Naval Staff Quartermaster Division Is requested to Investigate, in
agreement with Naval Group South, whether Group South could take over
the tasks which up to the present time have kept the Admiral, Black
Sea in Bucharest; the Admiral, Black Sea could then be transferred
farther east, at first to Constanta, in order to devote himself ex-
clusively to naval tasks in tha Black Sea.

This measure is the result of a memorandum by the Naval Staff about
naval tasks in the Black Sea, in which the Chief, Naval Staff agrees
that every effort must be made to seize the initiative from the Russians,
who have been almost unhampered so far. In order to do this full use
must be made of the few means at our disposal, and we will have t > re-
sort to makeshift methods. Bucharest is too far from the front o per-
mit our taking such energetic measures.

VIII. Situation East Asia

According to press reports the Japanese attacked Port Moresby in southern
Nev Guinea from Salamaua with bombs . The Naval Attache at Tokyo reports
that operations of the naval forces are under command of the chief of
the fleet. This commander sends only such reports to Tokyo concerning
the progress of the operations as are suitable for the press. Therefore
the Admiralty Staff seldom has more information than the press.

According to Reuter, 8 heavy U.S. bombers attacked Japanese ships and
the airport at Salamaua on 10 Mar. 9 ships, among them evidently one
light cruiser or destroyer, are said to have been damaged.

IX. Army Situation

1 . Russian Front :

Southern Army Group ;

Newly brought up German forces pushed superior enemy forces in
the Von Kleist Army sector back tfo the north at Varvarovka, and took
several villages. The advance of an armored group made from the bridge-
head of the 6th Army west of Balakleya pushed far to the south across
the Donets. At the points of penetration west of Kharkov our counter-
attack forced the enemy to abandon further breakthrough operations.

2. Central Army Group ;

Our troops were able to hold Vesniny against strong enemy at-
tacks. Attacks were also repulsed south of Sukhinichi. The 17th In-
fantry Regiment achieved a great local victory at Demenskoye by attack-
ing troop concentrations of a large part of 3 enemy divisions. The
enemy was kept from breaking out of the pocket southeast of Vyazma.
There were many enemy deserters. Enemy forces which. had penetrated
southeast of Gzhatsk were annihilated in a counterattack. We repulsed
heavy tank attacks on our positions northwest of Rzhev. The enemy
made repeated attempts to penetrate the left flank of the Corps west of
Rzhev, bringing up strong reserves. Our troops successfully advanced
northwest of Vyazma toward the Dniepr and east of Demidov. Enemy forces
entered the northern outskirts of Velizh after a strong attack.

- 128 -

■>

12 Mar. 19^2 CONFIDENTIAL

Northern Army Group ;

Lively combat activity near Kholm and Staraya Russa. The
captured commander of the 191st Rifle Division confirms the fact that
the supply situation of the 2nd Red Assault Army is difficult. In the
191st Division the flesh of dead soldiers was used as food. The enemy
penetrated our positions along the railroad southeast of Maluksa.

2. Finnish and Norvegian Front :
Situation unchanged.

3. North Africa :
Nothing to report.

***»»*#**#♦*#♦***#*»****♦

"

- 129 -

CONFIDENTIAL
13 Mar. 1942

Items of Political Importance

Great Britain ;

It is interesting to observe from Churchill's comments in the House of
Commons on the appointment of Lyttleton as Production Minister that
Lyttleton will be in charge of all production except that which is di-
rectly under the Admiralty, i.e., construction and equipment of warships,
and the Fleet program. The Admiralty will remain in charge of this pro-
duction if the Defense Minister and the War Cabinet approve. The Ad-
miralty will also be responsible for construction and armament of mer-
chant ships in cooperation with the Transportation Ministry.

According to a report from a Spanish diplomatic source, Churchill stated
that the number of ships sunk has increased to an alarming degree. It
is said In London that the present time is the most critical since the
beginning of the war.

U.S.A. ;

The attitude of the U.S. population toward Soviet Russia is still very
much divided. According to press reports, the Japanese successes have
made a great impression on the Negroes in the U.S., who show a remark-
able lack of interest in this "war of the whites".

Japan :

The Minister of the Navy gave a detailed account in the Diet of the naval
war, in which Japan has lost no ship of cruiser size or larger, but
only 4 destroyers, 4 submarines, 5 special-purpose submarines, 1 special-
purpose vessel, 5 minesweepers, and 27 transports. The enemy has lost
130 naval vessels. The War Minister announced that 210,000 prisoners
of war have been taken so far.

According to a diplomatic report, Japanese propaganda in China is focused
on the theme of Greater East Asia. It lays down a program of a new
prosperity with the motto of Asia for the Asiatics and elimination of /

foreign influences, improvement of the standard of living, independence
and freedom of the peoples under Japanese leadership against which op-
position is useless. The Axis alliance is hardly mentioned any more.
The propaganda utilizes primarily the successes of the Army and the Navy.

According to a report from the German Embassy, Tatekawa himself requested
to be recalled from Moscow, so that in the event of a Russo-Japanese war
a professional diplomat and not a general would be in Moscow.

Brazil :

By a decree of President Vargas, 10 to 30$ of the possessions of German
firms and private persons have been confiscated for the benefit of the
government. These funds are to serve as a guarantee and compensation
for acts of aggression against Brazilian property. It has been forbidden
to make property over to foreigners.

Chile:

According to a report from the German Legation, the sinking of South
American ships has complicated the relations between Chile and the Axis
Powers. Foreign Minister Rossetti will soon be replaced by Barros Jarpa,

- 130 -

13 Mar, 19^2 CONFIDENTIAL

whose sympathies are on the side of the U.S.A.

Sweden ;

According to a report from the Armed Forces Intelligence Division sent
for the information of the Commander in Chief, Navy, the Swedish envoy
in Berlin told the German Foreign Minister personally on 13 Mar. that
the King of Sweden solemnly declares and gives his word as king to the
Fuehrer that Sweden will never acquiesce to any Anglo-American plans re-
garding Northern Scandinavia which would involve marching through Sweden.
He is firmly determined to use armed force to prevent Anglo-American for-
ces from setting foot on Swedish soil.

France ;

According to press reports, Vichy Ambassador Haye assured Sumner Welles
that the French fleet will not be handed over to the Axi3 Powers.

Admiral Muschier has tendered his resignation to General de Gaulle,
evidently in connection with the question of the occupation of Miquelon
and St. Pierre which he raised.

Conference on the Situation with the Chief, Naval Staff

I. In reply to the Fuehrer's question about radar equipment in Norway
for location of ships , the Chief, Naval Communications Division replies
through the Naval Adjutant of the Fuehrer that the k sets intended for
that area were sent some time ago.

II. The Chief, Naval Staff Quartermaster Division reports about the
ships to be used for troop transports from Hamburg to southern Norway .
The request of the Armed Forces High Command can be met as regards ship-
ping space. It remains to be seen whether the ice situation will permit
carrying out the operation by the end of March as planned .

III. The Chief, Naval Staff desires that after the Fuehrer has decided
the matter of the Commissioner for Maritime Shipping, the wishes of the
Transportation Minister be complied with as much as possible, insofar
as this can be done considering the Navy's increased responsibility for
the merchant fleet. The position of the Undersecretary, Vice Admiral
Wuelfing should be strengthened by the Navy as much as possible.

IV. The Chief, Naval Staff gives orders pertaining to the repair and re-
armament of the GNEISENAU in accordance with the Fuehrer's decision ^ Tne
Fuehrer wants to be informed about the possibility of using the 2b" cm.
guns of the GNEISENAU for coastal defenses. The Chief, Naval Staff orders
that the ship should not be dismantled in a routine way, but with a view
to conservation for the purpose of using her again at a later date.

V. The Chief, Naval Ordnance Division reports about the conference with
Minister Speer concerning a further J>0%> reduction in construction pro-

ects , and appointment of another deputy for construction in the occupied

erritories, especially Norway.

i

He also reports on the effect of the induction of 450,000 armament
workers , which are supposed to be the last to be drafted from this in-
dustry.

VI. The Chief, Naval Staff Submarine Division reports that the shortage

- 131 -

13 Mar. 19^2 CONFIDENTIAL

of torpedo practice heads will have been overcome by 1 Apr.

VII. The Fuehrer wants the special naval communiques to be expressed in
more vivid terms , since they are too sober and brief as compared with
those of the other branches of the Armed Forces.

VIII. Since the Fuehrer refuses to interfere in the armament industry
(allocation of scarce raw materials to carry out the tasks ordered by
him), pointing out that the branches of the Armed Forces have to help
themselves, particularly since they were told as early as 1936 to take
into account in their armament programs raw materials which it would be
difficult or Impossible to obtain in case of war, the Chief, Naval Staff
Quartermaster Division is ordered to contact the Chief of the War Econ-
omy and Armaments Division, Armed Forces High Command. (See also the
minutes of the conference of 12 Mar. of the Commander in Chief, Navy
with the Fuehrer in War Diary, Part C, Vol. VII.)

IX. The Chief, Operations Branch, Naval Staff Operations Division re-
ports about the enemy situation In the northern North Sea , the distribu-
tion of submarines , and the transfer of the TIRPITZ back'to Trondheim.
The Chief, Naval Staff states that the Fuehrer has agreed to the plan
for using only submarines and light naval forces for the time being to
combat PQ convoys.

The Chief, Naval Staff approves the Naval Staff directive concerning
operations of submarines in the northern area (see War Diary 12 Mar.);
however, he orders that the 4 submarines operating east of the Shetland
Islands also be under the operational command of Group North and not of
the Commanding Admiral, Submarines.

The Armed Forces High Command has approved the request of the Naval Staff
that the preparatory period for operation "Felix" should be lengthened
from 3 to b months .

X. The Chief, Operations Branch, Naval Staff Operations Division re-
ports on the directive of the Armed Forces High Command that the Russian
islands in the*~Gulf of Finland be taken in time" The Chief, Naval Staff
Quartermaster Division reports on the plans for setting up German bat-
teries on these islands.

XI. The letter which the Chief, Naval Staff ordered written to the
Fuehrer concerning the basic necessity for a naval air force as shown
by past experience is to be written only after the Commander in Chief,
Air has replied to the letter sent him by the Commander in Chief, Navy
about the setup of the Commander, Naval Air. The Naval Staff will then
submit a draft.

XII. The telegram from the Commanding General, Armed Forces, South con-
cerning PT boat operations from Malta and Tobruk is read. The Chief,
Naval Staff approves the answer suggested by the Naval Staff (see War
Diary, 12 Mar.). It remains to be seen what the Fuehrer's final decision
will be concerning the operations against Suez and Malta. This will
primarily determine also where PT boat operations will be concentrated.

XIII. The Chief, Naval Staff reports on the conference with the Fuehrer
on 12 Mar., as recorded in War Diary of 12 Mar., Part C, Vol. VII. The
Fuehrer is planning a conference with the Duce in the near future, and
at that time will also take up the question of Suez, Malta, and Italian
transport submarines.

The Chief, Naval Staff believes it advisable to urge the Japanese to

- 132 -

13 Mar. 19^2 CONFIDENTIAL

launch operations in the Persian Gulf very soon, if possible as a prep-
aration for the German fall offensive against Suez.

The Chief, Naval Staff will receive Admiral Nomura for this purpose
within the next few days. At the same time it will be advisable for the
Chief of Staff, Naval Staff to have a conference with Nomura also.

Special Items

I. The Naval Liaison Officer at the Armed Forces High Command reported
that the Armed Forces High Command Operations Staff called the attention
of the Commanding General, Armed Forces, West to the contradiction be-
tween the request telephoned by Field Marshal Sperrle to- the Armed For-
ces High Commend and the report of the Commanding General, Armed Forces,
Vest. Field Marshal Sperrle asked that "the Navy be ordered not to
neglect its share of preparations in defense against enemy landings".
The Commanding General, Armed Forces, West, on the other, hand, reported
that "cooperation between all branches of the Armed Forces and between
the various units was excellent during the enemy attack on Cape d'
Antifer." The Armed Forces High Command Operations Staff has asked the
Commanding General, Armed Forces, West to furnish details that might
throw light on the objection raised by Field Marshal Sperrle.

At the same time, the Commanding General, Armed Forces, West has been
asked to suggest what changes in command might be made on the basis of
past experience for the defenses against enemy landings on the coasts
of the occupied western areas.

II. According to a report from the Naval Attache, Tokyo, Captain
Hiraide, spokesman for the Japanese Navy, in a public address compared
the achievements of the Japanese and German Armed Forces in a way so
derogatory for the Germans that the Naval Attache registered a very
sharp protest at the request of the Ambassador. The matter was settled
when Admiral Oka visited the Naval Attache in order to apologize, and
the Navy Minister sent a letter in which he expressed deepest regret
and announced that Hiraide would be punished.

Situation 13 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation ;

In the Naval Communications Division's compilation of inter-
cepted and decoded enemy reports up to 8 Mar. 19^2 (Radio Intelligence
Report 10/^2) there is no information of particular interest, except
for confirmation of the fact that enemy movements in the northern part
of the North Sea from 6 to 9 Mar. absolutely could not be detected by
radio intelligence.

In the British press a new type of warship, the so-called "NL boat",
has been pictured; the size of this vessel is halfway between a de-
stroyer and a motor torpedo boat. She has supposedly already been
used successfully in the escort service.

North Atlantic:

- 133 -

13 Apr. 19^2 CONFIDENTIAL

According to an agent's report from the U.S., the cruiser
NASHVILLE left Corpus Christ! for the Panama Canal and the Pacific on
17 Feb. vith 3 destroyers, several auxiliary ships with catapults for
fighter and torpedo planes, and 2 tankers. Transshipment for the Middle
East and India is mainly done in Baltimore. Voyages by single unescort-
ed ships have been stopped. Materiel transports leave the Chesapeake
Bay in convoys; 26 to 30 ships are to leave there between 13 and 19
Mar. with war materiel and also, for the first time, with mines. At
Pensacola 2 or 3 ships are to join this convoy. Between 12 and 16 Mar.,
several large tankers with deck cargo are to leave Gulf ports via the
Panama Canal. In the Chesapeake Bay the escorts are to be the cruisers
VINCENNES and SALT LAKE CITY, besides destroyers.

South Atlantic ;

According to radio reconnaissance there are not only U.S. war-
ships in the Cape area, but also British ships. Additional U.S. ships
are thought to be in the Falklands area. The report about the voyage
of the QUEEN MARY to the Cape seems to be false, made to mislead us.
The ship was sighted in the latitude of Pernambuco on 11 Mar.

It is not known how reliable this sighting report is.

Pacific Ocean :

According to an agent's report there is still regular, also
commercial, air traffic between the U.S. and Hawaii. The new line
Hawaii-Canton Island-Samoa-Auckland is restricted to Armed Forces traf-
fic.

Numerous old destroyers are being reequipped for escort service at Mare
Island, Corpus Chris ti, and San Diego. They will be ready in March.
Aircraft carrier WASP, cruisers ASTORIA, HELENA, HONOLULU, and destroyers
of the MAHAM class will be used as escorts on the Panama- Australia route.

2. Own Situation :

No news has been received from our ships. The enemy situation
reports were sent via Radiograms 0613, 1600, and 1827.

II. Situation Vest Area

1 . Enemy Situation :

Air reconnaissance sighted convoys south of the Isle of Wight
and south of Milford.

2. Own Situation :
Atlantic Coast :

Air reconnaissance failed to sight the 0S0RN0.

Channel Coast :

lb ground mines were swept on route "Rosa'], between points
33 E and 33 X nine new Mark XVI mines. Enemy planes were active in the
evening over Boulogne, Calais, and Paris, but dropped no bombs.

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13 Apr. 1942 CONFIDENTIAL

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation :

Nothing to report.

Own Situation :

The BEITZEN and torpedo boat T "4" arrived in Wesermuende from
Bergen.

Ship "28" left Flushing in westerly direction.

The steamer KELLER WALD was damaged by a mine 6 miles east of point A,
and is to be towed in.

Enemy planes were active over the East Frisia-Wilhelmshaven area during
the night of 12 Mar. For details see Telegrams 0710 and 0735.

2. Norway :

Enemy Situation :

Air reconnaissance sighted a force consisting of 7 vessels,
evidently destroyers, at 0925 in quadrant AF 2759 (120 miles west of
Utsire). Radio intelligence located 1 enemy vessel, presumably a sub-
marine, in the Bergen area at 1015, and 1 at 1313 between the Nord and
the Sogne Fjord.

On the basis of enemy reports Group North assumes that a. mining opera-
tion may be in progress against the Vest Fjord and the deep channel
near Bergen.

According to an intelligence report from Sweden dated 12 Mar. based on
a British underground radio communication from Sweden to Norway, the
British are planning to attack with nava3 forces at a point called B
26 K 4 (not identified) in the night of 14 Mar., supposedly near Trond-
helm.

The Naval Shore Command Kirkenes reported that on 12 Mar. a submarine
was sighted surfacing briefly in the Koi Fjord.

Own Situation :

The group of the Commanding Admiral, Battleship left Bogen
Bay at 2220 on 12 Mar. It reached Trondheim on schedule without special
incidents. At 1530 it was in quadrant AF 6458. Naval Signal Station
Trondheim was passed at 2020.

Submarine U "585" reports much ice east of 39° E moving west. Submarines
cannot operate in the area.

Submarine U "456" operated against an enemy convoy off Kola Bay, which
was reported by U "454" (see War Diary 12 Mar.), but had no chance to
attack. Group North issued the following order to the Commanding Ad-
miral, Norway and the Admiral, Arctic Ocean, with copies to the Naval
Staff, the Commanding Admiral, Submarines, and the 2nd Admiral, Subma-
rines :

a. The submarines of the Admiral, Arctic Ocean will be in-

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13 Mar. 19^2 CONFIDENTIAL

creased to 12. Attacks on enemy supply ships should be concentrated off
the enemy Murman coast and at the entrance to the White Sea.

b. Group North will soon order the Bluecher group to be re-
leased to the Admiral, Arctic Ocean. The submarines intended for the
north area vill return by the convoy route.

c. An additional k submarines vill also arrive via the convoy
route within the next few days in order to raise the number to 12. 3

of these will leave Heligoland on 14 Mar., and the fourth on 15 Mar.

d. The 12 submarines include those stationed at Narvik. It
will not be possible to increase the number of submarines ready for op-
erations to 12 until the ice situation improves.

e. The above figures do not include 2 submarines stationed
at Bergen and 2 at Trondheim, which remain at the disposition of Group
North and the Commanding Admiral, Submarines. An additional k subma-
rines will also remain under the Commanding Admiral, Submarines for the
time being. (See Telegram 1924.)

Convoy operations and submarine chase proceeded without special incident.

For a report by the Admiral, North Norwegian Coast about the barrage in
the Froi Fjord see l/Skl 5879/^2 Gkdos. in War Diary, Part C, Vol. II*.

After another investigation, the Commanding Admiral, Norway asked Group
North on 11 Mar. for permission to extend the fishing area between 620
and 68o N by 45 to 60 miles. Group North requests that the Naval Staff
make a new decision in the matter.

The Naval Staff informs the Group of its approval on 13 Mar.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

During an enemy air attack on Kiel in the night of 12 Mar. several
bombs were dropped on the Deutsche Verft, Deutsche Werke, and the Ger-
mania Werft. A number of bombs fell in the direct vicinity of the
SCHARNHORST between the floating dock and the starboard side; one bomb
exploded on the pier about 15 meters from the port side near compart-
ments XI and XTI, causing slight splinter damage to the superstructure
and the ship's side above the water, as well as starting some fires on
the upper deck at compartment IX in the passageway and the officers'
quarters, in the picket boat on the superstructure deck, and at compart-
ments XI and XII on the battery deck in the technical petty officers'
quarters. The fires were put out in short order. Casualties on the
SCHARNHOBST amounted to 3 dead and 18 wounded. (See Telegram 0300.)

An alarm was sounded in Kiel due to an erroneous report that parachute
troops had landed. For details about the air situation see Telegrams
0737, 07^3, 1200, and 1345.

Coastal Defense Commander, West reported that the enemy is using con-
siderably more flares than heretofore, and that enemy planes approach
with the motors shut off so that they hardly make any sound while
circling.

The Fleet has ordered the SCHARNHORST to be transferred at once from
her especially dangerous location, since she cannot be docked until

- 136 -

13 Mar. 1942 CONFIDENTIAL

measures to Improve the defenses, which are nov in progress, have been
carried out. (See Telegram 1545.)

The Naval Staff agrees with this measure. Group North is informed, with
copy to the Admiral, Baltic States, that the troops intended for the at-
tack on the Islands in the Gulf of Finland will arrive between 21 and
24 Mar. in the Narva area. The Finnish Army has promised to provide of-
ficers familiar with the ice conditions and several Finnish pilots.
(See Telegram l8l6.)

V. Merchant Shipping

2 new cases have become known in which Portuguese ships carried food
supplies from Portuguese harbors to Gibraltar.

In Spain a new undersecretariat has been created for the merchant marine,
which in peacetime will be under the Ministry of Commerce, and in war-
time under the Ministry of the Navy. For additional reports about for-
eign merchant shipping see Brief Report No. 8/42 of the Foreign Merchant
Shipping Branch of the Naval Staff Intelligence Division.

VI. Submarine Warfare

1. Enemy Situation :

Air reconnaissance located submarines 90 miles north of Rockall
Bank and 80 miles southeast of Porcupine Bank. According to an agent's
report based on conversations between Americans which were overheard,
the cruiser OMAHA and 7 torpedo boats are to be sent to Gibraltar soon.

U.S. tanker MERCURY SUN (8,893 GRT) exploded 140 miles southeast of
Cape Hatteras as the result of a submarine attack. Submarine sighting
reports sent by 3 steamers in the West Indies were intercepted. All
U.S. merchant ships were warned to avoid the northern coast of Cuba,
since submarines are very active there. U.S. tanker ESSO BAYONNE
(7>998 GRT) reported being fired upon by a submarine off the west coast
of Haiti.

According to press reports a British tanker and a small Swedish freighter
were torpedoed in the Caribbean Sea. 83 survivors of these vessels ar-
rived in a Caribbean harbor.

The U.S. Navy Department has announced that hereafter the names of sunk
and torpedoed ships will no longer be published. The loss of steamer
MALAMA in the Pacific Ocean is the last to be announced.

2. Own Situation ;

3 large and 6 medium- sized submarines are stationed off the
American coast; 7 large and 5 medium-sized submarines are en route to
and 9 large and 6 medium-sized submarines are en route from the area.

15 submarines are in the operations area In the Arctic Ocean and Nor-
wegian waters; 4 are returning from there; 2 are in Trondheim and 2 in
Bergen. 2 submarines are stationed in the South Atlantic, and one is
detailed for special tasks. In the Mediterranean there are 4 submarines

- 137 -

13 Mar. 19^2

CONFIDENTIAL

in the operations area and 1 is returning from there;
in La Spezia, 9 in Pola, and 3 in Salamls.

9 submarines are

For Instructions of Group North about the distribution of submarines In
the North Area see Situation Norway.

In accordance with the wish of the Commander in Chief, Navy, the Naval
Staff gives orders that Group North, as the command responsible for war-
fare in the Arctic Ocean and defense of the Norwegian area, should direct
the operations of the 4 submarines stationed outside of the ports of
departure in the Jan Mayen area, east of Iceland and northern Scotland,
for the purpose of disrupting enemy transport movements. Details about
tactical command are to be arranged between Group North and the Command-
ing Admiral, Submarines; Group North is to keep the Naval Staff informed
about its plans. For copy of directive see l/Skl I a 593/42 Gkdos. in
War Diary, Part C, Vol. IV.

Submarine U "126" (Lt. Ernst Bauer) reports from the West Indies that
she sank 8 ships totalling 46, 794 GRT.

Submarine U "67" sank tanker PENELOPE (8,436 GRT) in the same area. In
the Mediterranean submarine U "83" torpedoed 1 steamer north of Solium
Bay. It could not, be observed whether she sank due to strong defense
action.

For Supplement to the Submarine Situation see War Diary, Part B, Vol.
IV.

VII. Aerial Warfare

1. British Isles and Vicinity ;

The 7 enemy destroyers reported west of Utsire were attacked
twice by planes of the 5th Air Force, but without success. At night
32 planes dropped mines in the Humber.

Enemy air activity over Germany in the night of 13 Mar. concentrated
on Cologne. In addition there were 32 incursions into Belgium, 4 into
western France, and 1 into Norway. For damage caused in Cologne see
dally situation report.

2. Mediterranean Theater ;

Attacks on Malta are continuing. During a dive bomber attack
on Tobruk 1 steamer of 3,000 GRT received 3 direct hits.

3.

Eastern Front:

The 1st Squadron of the 100th Bomber Group reported sinking a
submarine south of Feodosiya. A plane which attacked an enemy steamer
stuck in the ice north of Iokanga did not return. No reports were re-
ceived from the Army fronts.

VIII. Warfare in the Mediterranean
1. Enemy Situation :

- 138 -

13 Mar. 1942 CONFIDENTIAL

Air reconnaissance sighted a small eastbound convoy with
fighter cover north of Marsa Matruh in the morning.

According to an Italian report the enemy force consisting of 3 cruisers
and destroyers which was attacked hy a German submarine on 11 Mar. north-
east of Sldi Barrani arrived in Alexandria on 12 Mar. The force probably
had another encounter with a submarine east of Marsa Matruh. According
to radio intelligence, the Swedish steamer RADMANSOE left Haifa. Accord-
ing to an unconfirmed intelligence report, a heavy cruiser, 2 training
ships, 1 aircraft tender with 50 planes, 4 submarines, and 5 transports
arrived in Famagusta on 11 Mar. 30 seaplanes are said to be in the har-
bor.

2. Own Situation ;

Mine operations of the 3rd PT Boat Flotilla against Malta
were cancelled because of the weather.

3. Situation Italy ;

The Italian Navy assumes that the enemy submarines chased on
12 Mar. off Taranto and on 13 Mar. southeast of Piraeus were sunk. The
sinking off Taranto was due to a search receiver.

4. Transport of Supplies to North Africa ;
Nothing to report.

5. Area Naval Group South ;

Aegean Sea ;

A convoy consisting of 7 Italian steamers arrived in Patras
from Bari on 12 Mar. There was a submarine chase in the Gulf of Salonika,
mainly on the approach route of the BARLETTA. According to a Greek re-
port, an additional auxiliary sailing vessel was sunk by an enemy sub-
marine northeast of Porto Rafti. The BARLETTA and 2 torpedo boats, a
subchaser, and 2 Italian subchasers arrived in Salonika on 12 Mar. and
will depart again on 14 Mar. for special assignment. The SIENA trans-
port group is operating according to plan.

Black Sea ;

Enemy Situation ;

Air reconnaissance gathered no new information. The floating
dock which was towed from the Kerch Strait in a southeasterly direction
was probably used previously for bringing up railroad equipment and sup-
plies for Russian troops on the Kerch Peninsula.

Own Situation ;

Nothing to report.

IX. Situation East Asia
1. Enemy Situation ;

According to press reports a U.S. submarine sank another 3

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13 Mar. 1942 CONFIDENTIAL

enemy freighters and a passenger vessel In Japanese waters.

On 12 Mar. planes raided the Japanese landing area on New Guinea again.

2. Situation Japan :

According to press reports the Japanese occupied the northeast
coast of Su'aatra and the towns of Medan and Sabang, almost without a
fight. According to the Military Attache in Bangkok the procedure of
the Japanese Air Force was as follows: Attacks on battleships are made
first with bombs, then aerial torpedoes. During the fight for the South
Sea Islands every single army was given an airborne division with flex-
ible organization. The Army Air Force was put in charge of close tar-
gets and ground support, the Naval Air Force of escort duty and remote
targets. When the same targets were assigned^ the Army and Navy Air
Forces attacked at different times. At the start of the operations the
Army Air Force was assigned Hong Kong and Malaya, the Naval Air Force
with long-range bombers the Philippines, and with aircraft carriers
Hawaii, Wake, and Guam.

The Japanese submarine arm is used primarily defensively for reconnais-
sance purposes, and cooperates directly with aircraft carriers operating
independently. The British had made preparations for destroying air-
fields by means of a sort of drainage pipe filled with explosives equipped
with remote-control fuze. The enemy destroyed all repair shops. There-
fore the Japanese were forced to bring all spare parts from Japan by
air. The Messerschmitt fighters proved to be superior, and the best
means of combatting the Boeing B 17 bomber.

X. Army Situation

1. Russian Front :

Southern Army Group :

The enemy launched another attack on the northern wing of the
Feodosiya front, but was repulsed except for one breakthrough by numer-
ous tanks east of Klyat. Renewed attacks are expected.

After heavy preparatory bombardment the enemy attacked with 2 divisions
west of Slavyansk at the Von Kleist Army Group. The attack collapsed.
Heavy fighting is going on at the southern wing of the 6th Army. Sev-
eral enemy tanks broke through in the Babka sector. An attack was re-
pulsed southwest of Volchansk.

Central Army Group :

The 2nd Panzer Army repulsed all attacks. North of *Xukhnov
the enemy broke through the lines of the 4th Army. The breach was
sealed off. A tank- supported attack northeast of Gzhatsk during a
blizzard collapsed directly in front of our lines, and the enemy suffered
severe losses. Northwest of Rzhev enemy tanks broke through during a
heavy storm from the north. A counterattack is in progress. At
Losovaya a very severe blizzard has been hampering operations for the
past 3d hours.

Northern Army Group :

All enemy attacks were repulsed.

- 140 -

15 Mar. 19^2 CONFIDENTIAL

2. Finnish and Norwegian Front ;

East of Baranova Gora the enemy attacked after preliminary
artillery fire, but without success. Live'y scouting activity in the
Ukhta sector.

5. North Africa ;

Situation unchanged.

*##****♦****♦♦*♦*»***♦♦♦*

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CO NFIDENTIAL
14 Mar. 19^2

Items of Political Importance

France :

An article In the U.S. press which has caused much comment demands a
sharper attitude toward France. According to this article, if this
should lead to a break with France nothing can he done about it, for it
Is better to weaken France now before she is completely ready to cooper-
ate with Germany. Only fear of an Allied attack keeps France from co-
operating with Germany. Therefore France must become the next goal of
the Allied offensive, particularly since air attacks from England on
French territory are easier than on German territory.

According to General Juin, Commander in Chief in French North Africa,
the long occupation and the prisoner of war question has a demoralizing
effect on the French people, many of whom are ready for cooperation with
Germany. Also in Africa people are beginning to understand the role of
Marshal Petaln. The North Africans are not followers of De Gaulle, and
the Arabs have been won over to France. Unfortunately, however, the
Italians still seem to have designs on Tunis.

Great Britain :

General Wavell declared that the loss of Rangoon and a great part of
southern Burma Is more serious than the loss of Singapore, since India
is now threatened directly. All possible defense measures for India
have been taken. Above all a powerful air force will be stationed in
the northeast. Pointing out the difficulties confronting Japan because
of the Russian threat, he declared that the fight for the Dutch East
Indies was like a race in which British reinforcements unfortunately
arrived 4 to 5 weeks too late. Britain was not prepared for the war In
East Asia, and her forces were tied down in the homeland and the Middle
East, and as the result of shipments to Russia. The loss of the Indian
troops in Malaya was due to lack of experience in jungle warfare.

According to reports from London Cripps has authority to negotiate only
the details of the compromise proposal which he helped to work out; ■ in
all fundamental questions he has to consult the War Cabinet. The plan
itself is still a secret, but is said to offer the Indians greater re-
sponsibility in their government and far-reaching changes In their cons-
titution within a certain time after the end of the war . The Indians
themselves have different opinions about Cripps' mission. The Mohammedans
hope to achieve a partition of India into a Hindu and an Islam state,
while the All -India Congress is greatly disappointed that Britain did
not make greater concessions. Cripps' mission is termed a delaying
action, and the Moslems are accused of sabotaging the struggle for inde-
pendence. The U.S. government shows great reserve so as to avoid any-
thing that might interfere with the very difficult discussions.

Realization of either Moslem or Hindu desires would be
equally unsatisfactory for the British. Their present
Indian policy will have to have two main goals: the de-
fense of India against Japan, and maintenance of Indian
lack of unity.

Australia :

Prime Minister Curtin stated in a radio talk to the American people that
the Australian Foreign Minister will go to Washington in order to es-

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Ik Mar. 1942 CONFIDENTIAL

tablish the closest possible contact with the U.S. government. Britain
is fully occupied with the Battle of the Atlantic and aid to Russia, so
that the U.S. alone is the determining factor in the Pacific, even
though Australia' s relation to the British mother country wLJl remain the
same as before. Australia is the last remaining bastion in the Pacific.
If she is saved the American west coast is safe.

Australia so far has not answered the message" of the Japanese Prime
Minister; however she is expected to do so. Japan is said to have de-
manded that Australia no longer permit Britain and the U.S. to use
Australian territory as a military base.

Portugal :

The opinion obtains in the U.S. Legation at Lisbon that the U.S. will
seize bases in the Atlantic in the spring, and may attempt a landing on
the Iberian Peninsula. Thus a new front would be created in the
Pyrenees, which would afford the Russians the necessary relief. Salazar
is said to have made the comment that since positive proof is lacking
nothing definite is known.

Sweden ;

The government confiscated 14 newspapers which carried news about the
arrest of the Norwegian bishops and the church quarrel in Norway.

Iran :

According to foreign reports Great Britain and Russia have come to an
agreement about the spheres of influence in Iran; the British have
given up many of their earlier demands. It is said that they will with-
draw their troops from Teheran and the central part of the country and
will retain only the defense zone for the protection of the oil fields
in the south. The Russians are continuing their terror tactics.

Brazil :

According to the United Press, the measures against German property in
Rio have become more serious .

Special Items

"Most reports concerning British and American plans agree that the enemy
is trying to maintain Russia's power of resistance by means of great
quantities of supplies and to open a second front in Europe in order to
divert German forces from Russia. The regular heavy convoy traffic from
Scotland to Murmansk or Archangel can serve both purposes. Therefore
we must consider the possibility of enemy landings on the arctic coast,
in which case the nickel mines in northern Finland which are indispens-
able to us are most likely to be attacked."

This remark introduces the Fuehrer directive, which stipulates that all
available means should be used to disrupt sea communications between the
Anglo-American powers and Russia in the Arctic Ocean, which are practical
ly intact so far, and to overcome the enemy's supremacy at sea which ex-
tends into our own coastal waters. See Ob.d.M. 605/^2 Gkdos. Chefs, in
War Diary, Part C, Vol. Ila for copy of the directive which resulted
primarily from the conference of the Commander in Chief, Navy and the
Fuehrer on 12 Mar., and contains the special orders of the Fuehrer for

- 1^2 -

14 Mar. 1942 CONFIDENTIAL

the Navy, Air Force, and Army.

Situation

14 Mar

'. 1<

?42

w
JL •

War

In Fore

>ign

Waters

1.

Enemy

Situation:

South

Atlantic :

The auxiliary cruiser CILICIA left Montevideo on 11 Mar.

The Brazilian government is planning to order that all merchant ships
he armed .

According to an agent report the QUEEN MARY was sighted on 12 Mar. in the
latitude of Ceara heading for Belem. The ship is equipped with 3
splinterproof turrets at the how, each with an antiaircraft gun. Be-
tween the first and the second smokestack there is an armored cupola
for radio equipment. In addition to antiaircraft guns and machine guns
the ship is equipped with naval guns, supposedly of 34 cm. caliber, al-
though this seems most unlikely.

Pacific Ocean :

Between 11 and 16 Feb. 2 U.S. destroyers entered Callao, 1
U.S. destroyer coaled in Talara on 12 Feb. 2 Peruvian cruisers and 2
submarines are stationed at Tarara, the harbor of which is protected
with light antiaircraft guns. There are 6 Peruvian and 4 U.S. planes
on the Tarara airfield at the present time.

According to an agent report from the U.S., fuel for Australia and the
South Pacific will be supplied by the U.S. after the loss of the Sunda
Islands.

2. Own Situation :

No reports have been received from our ships in foreign waters.

The Japanese Liaison Officer reported that the Japanese Navy cannot
carry out the opere-tion through the Northeast Passage in the summer of
1942, since no naval forces are available to escort the ships through
the Bering Strait and the Bering Sea.

Radiogram 2111 informs ship "10" that the TANNENFELS left western France
on 7 Mar., and that it is planned to have her meet the REGENSBURG.

Radiogram 1843 informs all naval forces in foreign waters that the new
code is going into effect. Information on the enemy situation is sent
by Radiograms 1032 and 1919.

II. Situation West Area

1 . Enemy Situation :

According to the radio intercept service a German force was

- 144 -

♦

14 Mar. 1942 CONFIDENTIAL

located by Dover at 0330 eight miles north of Calais on southwest course,
and motor gunboats were ordered to attack it. At 0445 the report of
motor torpedo boat "34" about an engagement was intercepted. At 2346 a
British vessel reported 3 German PT boats southeast of Lowestoft near
the ATTEMPT convoy. Air reconnaissance reported lively convoy traffic
on the southwest coast and In the Bristol Channel.

2. Own S ituation ;

Atlantic Coast ;

Nothing to report.

Channel Coast:

s ■■ ■ ■ ■ i ■

While en route from Flushlng-Le Havre under escort of the 5th
Torpedo Boat Flotilla, the 2nd Motor Minesweeper Flotilla, and vessels
of the 2nd Minesweeper Flotilla, ship "28" was attacked by light enemy
naval forces between 0330 and 0710. At first our vessels had an encoun-
ter with enemy PT boats, one of which burst into flames, and 2 others
were damaged with certainty. At about 0645 4 enemy destroyers of the
KH class entered into the engagement, attacking from the dark horizon in
the west. They were located by means of flares, and were attacked by
the 5th Torpedo Boat Flotilla and the Minesweepers. Simultaneously the
PT boats attacked astern in a pincer action. 1 destroyer was seriously
damaged and probably sunk. 1 PT boat was destroyed. Later our force
was attacked by 3 enemy torpedo planes, one of which was shot down by a
German fighter. Strong fighter cover prevented further attacks by enemy
planes, which maintained contact until our ships entered Le Havre. We
suffered no losses or damage during the entire operation. At 2100 the
force proceeded from Le Havre to the west. See Telegram 2230 for a pre-
liminary brief report.

The successful defense against this enemy attack is very
commendable.

In the evening the 2nd and 4th PT Boat Flotillas went on a torpedo mis-
sion off Cromer. No successes have been reported so far.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation:

Air reconnaissance reported normal convoy activity on the
east coast.

Own Situation :

The 2nd Hamburg-Oslo transport group has gotten under way with
1,881 men aboard. Steamer KELLERWALD sank after salvage efforts failed.

2. Norway :

Enemy Situation :

Air reconnaissance reported an icebreaker and 9 steamers in
Iokanga Bay. On 13 Mar. radio intelligence intercepted a message from

- 145 -

14 Mar. 1942 CONFIDENTIAL

the leader of the destroyers to all ships in home waters that 2 planes vere
maintaining contact with his force. The 5th Air Force assumes that the
force is either between the Shetland and Lofoten Islands In a patrol
line, or farther west as advanced patrol.

According to an intelligence report, Canadian icebreakers are operating
in the Arctic Ocean. This report bears investigation.

Own Situation ;

The Admiral, Arctic Ocean reports that 3 submarines are in the
operations area off the Murman coast, and a fourth is In Kirkenes ready
for operations. Minesweeper M "1504 reported an unsuccessful torpedo
attack in quadrant AF 7368, evidently by an enemy submarine.

According to the Commanding Admiral, Battleships, his entire force will
have replenished supplies by 15 Mar. at about 0800. The TIRPITZ, de-
stroyers IHN and Z 25", and torpedo boat T "5" will be ready for action
only to a limited degree for 2 to 4 days because of necessary repairs.
For details see Telegram 1850.

Group North agrees with the proposal of the Commanding Admiral, Norway
that a minefield be laid in the Porsanger Fjord (see War Diary 12 Mar.).

The Commander in Chief, Air has issued instructions to the 5th Air Force

for the continuation of operations. In accordance with these, attacks

on PQ convoys are given prime importance. These attacks will be made

in cooperation with the Navy as well as Independently by the 5th Air Force.

The orders contain special provisions for cooperation with the Navy.

For copy see l/Skl 6032/42 Gkdos. in War Diary, Part C, Vol. Ila.

The Admiral, Arctic Ocean pointed out In his war diary of 9 Feb. on the
basis of exploration of the ice situation at Bear Island that it is pos-
sible to pass north of the island with or without the aid of Icebreakers.
He states that the following facts tend to bear out this assumption:

a. All submarine operations south of Bear Island have been
unsuccessful, except for the sinking of 1 steamer on 2 Jan.

b. According to Russian reports there exists a convoy route
to the Murman coast which is safe from German submarines.

The Naval Staff Hydrographic and. Meteorological Division is asked to In-
vestigate the matter. The attention of the Commander in Chief, Air Is
also called to this problem.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

As the result of the experiences gained during the last enemy air attacks
on Kiel, Naval Station, Baltic Sea requests that 3 Air Force antiaircraft
detachments, each with 3 or 4 heavy and 2 light batteries and 1 search-
light battery, be provided at once, since the air defenses of the center
of Kiel are no longer In any way adequate to cope with the heavy air
attacks, in which the enemy has lately used very skillful attack tech-
niques. (See Telegram 1308.)

The Naval Staff Quartermaster Division will attend to the matter.

According to the Naval Liaison Staff, Finland, the Finns believe that

- 146 -

14 Mar. 1942 CONFIDENTIAL

there are altogether 11 Russian torpedo or gunboats, 32 minesweepers,
20 subchasers, 9 transports, 17 tugs, and 7 school or survey vessels on
Lake Ladoga. Group North believes that there Is 1 minesweeper tender
with about 30 minesweepers, 1 torpedo boat, 4 gunboats, 3 armored barges,
and 7 transports. The Finns welcome our plan to transfer naval vessels
to Lake Ladoga, and they promise support In every way. It Is possible
to transport the ships through Finland. They cannot go Into action un-
til the end of May. Therefore the Naval Liaison Staff asks that the
question, which had been deferred, be Investigated once more.

V. Merchant Shipping

1. Since It Is necessary to Import about 150,000 tons of scarce
materials from East Asia to western France during the next shipping
period In winter 1942-43, and the German shipping space available Is not
sufficient, the Naval Staff Quartermaster Division Is Instructed to take
steps now to provide additional suitable shipping space. The efforts

to obtain use of Japanese ships, which another office Is making, are a
step In this direction. It Is desirable that the Italian motor freighters
HIMALAYA, C0RTELLAZZ0, PIETR0 0RSE0L0, and FTJSIJAMA continue to partici-
pate. Negotiations to charter these ships are to be taken up at once.
If these negotiations prove unsuccessful, an attempt is to be made to
charter at least one of these freighters for camouflage purposes.

2. The Maritime Shipping Office in the Transportation Ministry
reported to the Armed Forces High Command (copy to the Naval High Com-
mand) that German ships in Norway increased from 57 ships totalling
344,000 tons on 1 Dec. 194l to 133 ships totalling 613,000 tons on 5
Mar. 1942. Thus two thirds of the shipping space available for trans-
porting supplies directly connected with the war effort is in the Nor-
wegian area. The Maritime Shipping Office believes that since unloading
facilities in Norway are Inadequate and have not been improved during
the past year and a half, the increase in the number of ships has re-
sulted in many of the ships' being used for storage; if shipping space
had been used more wisely, approximately 300,000 tons could have been
put to other use. The increased demand for shipping space for supplies
to Norway, and the fact that it takes these ships 3 to 5 times longer
for the voyage than it used to, as well as the Increased difficulties in
repairing damaged ships, are mainly responsible for the fact that the
ships at the disposal of the Transportation Ministry transported only a
total of 15,500,000 tons in 1941 as over against 21,000,000 tons in 1940.
This is bound to have an effect on the war effort. The Maritime Ship-
ping Office therefore demands that by the middle of April at least
300,000 tons of shipping space be returned to Germany, and makes sugges-
tions as to how shipping space could be used more advantageously.

VI. Submarine Warfare

1. Enemy Situation :

Radio Intelligence intercepted a report from a plane about a
supposed hit on a submarine north of Rockall Bank. According to an in-
telligence report from Spain a convoy consisting of 14 ships with an
auxiliary cruiser, 2 destroyers, 2 gunboats, and 7 corvettes (?) left
Gibraltar in the afternoon. Radio intelligence intercepted part of an
SSS message from the area 500 miles northwest of the Cape Verdes.

- 147 -

14 Mar. 19^2 CONFIDENTIAL

A U.S. merchant vessel was informed that 2 submarines were sighted near
the Nantucket lightship in the night of 13 Mar. An SSS signal of the
British tanker BRITISH RESOURCE (7,209 GRT) was intercepted from 240
miles north of Bermuda. According to a report from the British Admiralty,
106 crew members from submarines U "131", 434", and "574" were captured
when these submarines were sunk in the Atlantic in 194l, while 29 crew
members are missing. One of these submarines sank the U.S. destroyer
STANLEY, and was in turn rammed and sunk by destroyer STORK. U "574"
was sunk on 18 Dec, U "434" on 17 Dec.

According to a German News Agency (DNB) report, the Brazilian vessel
CAMPANI (3,000 GRT) is 6 days overdue.

2. Own Situation :

In accordance with the directive from the Naval Staff (see
War Diary 12 Mar.), the Commanding Admiral, Submarines reports that sub-
marines U "209", 378", "376", and "655" have been put under the command
of Group North. The last 2 of these submarines left Heligoland on 14
and 15 Mar. No change has been made for the time being in the Shetland s
and Jan Mayen area, where submarines U "701", "135", "569", and "553"
are stationed.

Successes reported ;

On 13 Mar. submarine U "404" sank a 6,000 GRT steamer proceed-
ing without lights south of Long Island. After the steamer was hit she
lighted up and displayed Chilean colors.

On 14 Mar. U "l6l" sank a 5,000 GRT tanker with her last torpedo south-
west of Santa Lucia.

In the Mediterranean submarine U "133" sank off Cape Turlos immediately
after departure from Salamis as the result of a mine hit. It is possi-
ble that this is a case of faulty navigation while passing the gap in
the minefield. Additional information must be awaited.

VII. Aerial Warfare

1. British Isles and Vicinity :

Armed reconnaissance attacked a convoy on the southwest coast
unsuccessfully, and another in the Bristol Channel without observing
results. 23 planes dropped mines in the Thames the night of 14 Mar.
As an alternate target 4 planes attacked Falmouth by dead reckoning.
Air reconnaissance failed to sight the 0S0RN0 in the Atlantic.

2. Mediterranean Theater :

Nuisance raids on the airfields on Malta continue.

3. Eastern Front :

No results were observed during attacks on the steamers located
by air reconnaissance off Iokanga. No other reports were received.

- 148 -

•

14 Mar. 1942 CONFIDENTIAL

VIII. Mediterranean Warfare

1. Enemy Situation ;

A cruiser of the DELHI class arrived in Gibraltar from an un-
known direction. According to an Italian agent report the MALAYA has
left dock. For departure of the convoy to the west see Enemy Situation,
Submarine Warfare.

Only 4 submarines were still in Valletta in the morning. 2 submarines
were sighted off Crete, and another one off Punta Stilo.

According to air reconnaissance there was little ship traffic in the
Alexandria and Tobruk areas. There were many ships in Alexandria.

2. Situation Italy :

Enemy planes attacked Benghazi in the night of 13 Mar. No
damage has been reported. An enemy submarine sank an auxiliary sailing
vessel en route from Trapani to Tripoli off the east coast of Tunisia.

3. Transport of Supplies to North Africa :

Steamer TRAPANI, returning empty from Tripoli on the western
route, noticed a British plane maintaining contact. Otherwise nothing
to report.

4. Area Naval Group South :

Aegean Sea :

Enemy planes were active over Athens the night of 12 Mar.,
but dropped no bombs. Auxiliary ship BARLETTA left Salonika with an
escort for a special assignment.

Black Sea :

Enemy Situation :

The radio intercept service located cruiser E in the Sevastopol
area. 3 destroyers and 2 submarines were in the same area. Messages
between cruiser A, in the area off the southern part of the east coast,
and Batum were intercepted. 8 more submarines were located at sea, at
least 3 of them in the southwestern part of the Black Sea, and 3 off the
southern part of the east coast. The submarines are maintaining radio
silence, and only messages addressed to them were intercepted.

The German Legation at Bucharest forwarded a memorandum of the Rumanian
Foreign Ministry which states that "it seems the Russians are preparing
a landing between Varna and Burgas for the coming spring". It is as-
sumed that the main objective is not so much to create a new Balkan
front as to incite a communistic revolution in Bulgaria, to be followed
by revolutions in Yugoslavia and Greece. The Rumanian government does
not believe a communistic revolution in Bulgaria at all unlikely, since
the Bulgarian people are decidedly pro-Russian, and the lower classes
have pronounced Bolshevistic leanings.* The army is not communistic,
but it is pro-Russian. The German Minister believes that these views
may go too far, but that they are worthy of note, particularly since
other reports concerning agents operating under the direction of the
Soviet Legation in Sofia are available.

- 149 -

14 Mar. 1942 CONFIDENTIAL

Own Situation ;

Nothing to report about the naval situation.

The Air Force Operations Staff has Issued orders to the 4th Air Force
for operations against enemy ship movements in the Black Sea. These
attacks are to he concentrated in the Sevastopol, Kerch, and Kamlsh
Burun .areas, particularly Sevastopol, and they are to take precedence
over operations in other areas of the Black Sea. Air reconnaissance
for the purpose of locating ships is also to concentrate on coastal
areas. For copy of the directive see I a 6283/42 Gkdos. in War Diary,
Part C, Vol. XIV.

IX. Situation East Asia

1. Enemy Situation ;

According to Reuter the Australian Prime Minister has announced
that cruiser PERTH and PT boat YARA must be considered lost.

2. Situation Japan ;

According to a report from the Military Attache in Tokyo, the
Japanese General Staff does not yet know whether the capitulation on
Java includes the Sumatra forces. The Military Attache at Bangkok re-
ports that the British forcibly recruited 50,000 Indians In Burma, so as
to keep them from being used by the Japanese. The advance along the
railroad Rangoon-Prome to the north Is continuing. The Japanese have
occupied the Andaman Islands, as well as Akyaban harbor northwest of
Rangoon. Operations will be hampered by the rainy season which begins
at the end of March. Heavy air attacks by the Australians on the Japan-
ese beachhead at Huon Gulf (New Guinea) have been reported. The Japan-
ese Navy bombarded the Christmas Islands.

X. Army Situation

1. Russian Front ;

Southern Army Group ;

Continuing strong attacks in the Crimea, the enemy succeeded
in penetrating the northern part of Korpech. Counterattacks are in
progress. At the Von Kleist Army Group a night attack by about 450
naval troops and 150 engineers coming from Shabelskoye was repulsed at
the Mius estuary, with severe enemy losses. All attacks launched by
the enemy north of Taganrog were unsuccessful. At Slavyansk fierce
street fights took place during a heavy snowstorm. In the sector of the
6th Army the enemy pushed back our lines west of Balakleya. Enemy pres-
sure on Kharkov continues undiminished.

Central Army Group ;

Enemy attacks south of Sukhinichi were unsuccessful. All en-
emy attacks on the highway at Yukhnov were repulsed. South of Vyazma
broadcasts to enemy troops resulted in 310 deserters. Northeast of
Gzhatsk troops which had penetrated our lines were thrown back. Further

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14 Mar. 19^2 CONFIDENTIAL

enemy attacks northwest of Rzhev and north of Byeloi were also unsuccess-
ful.

Northern Army Group :

In general the situation is unchanged, with some local combat
activity. The deep snow is interfering with operations. Heavy fighting
continues at Maluksa.

2. Finnish and Norwegian Front :

2 enemy attacks along the street from Syargozero to Kirasozero
were repulsed with heavy enemy losses.

3. North Africa :

Lively enemy scouting activity. Enemy planes attacked the
area of the XX Army Corps during the night of 13 Mar.

*************************

- 151 -

CONFIDENTIAL

15 Mar. 19^2

Sunday

Items of Political Importance

Great Britain :

The Undersecretary of State for War declared that the Allied defenses in
the Pacific collapsed when naval supremacy was suddenly wrested from
them. It is unjustifiable to reproach the troops for giving up Singa-
pore after only 7 days, since they already had 10 weeks of heavy fight-
ing on the Malay peninsula behind them.

Australia :

The War Minister claims that rumors about the possibility of a Japanese-
Australian peace are enemy propaganda. Australia is an integrate part
of the Empire.

South Africa :

During heated debates in Parliament, Smuts rejected attacks on the U.S.
because of insufficient support or her allies, and stated that relations
between the South African Union and Mozambique could not be better. He
claims there are no plans for attacking Madagascar.

U.S.A. :

A reliable agent claims that public pressure in favor of taking the of-
fensive refers particularly to Iceland and Central Africa . The plan to
attack northern Norway from Iceland is said to be primarily of British
origin, and the plan to launch an offensive via the Congo to the south
and from there to North Africa, the Near East, and the Caucasus of
American origin. It is considered that landings in Italy or Spain would
be too costly. Small-scale operations against France are merely intended
to be of nuisance value.

Japan :

Diplomatic circles term the report from a British source stating that
the Japanese commander on Bataan committed harakiri a malicious inven-
tion.

Situation 15 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation :

South Atlantic :

According to an agent report from Brazil, a large gray ship
with 4 escort vessels was sighted east of the mouth of the Amazon River
on 13 Mar.; it is believed that this might be the QUEEN MARY.

Various reports indicate that a large U.S. convoy is being assembled

- 152 -

15 Mar. 19^2 CONFIDENTIAL

which will head for the Far East via Capetown. In Lisbon it is rumored
that the troops of this convoy will occupy Madagascar.

Pacific Ocean ;

According to a decoded radio message, a U.S. steamer received
orders from radio station Summit on 135 Mar. to proceed directly to
Antofagasta. This indicates that there is controlled routing of ships
in the South Pacific.

2. Own Situation ;

Radiogram 1931 contains information about the enemy situation.

II. Situation West Area

1. Atlantic Coast ;

Radiograms 1218 and 1323 instruct the OSORNO and the GERMANIA
to be on the lookout along their approach route for a northbound convoy
on 16 Mar. between 230 and 180 V, and for a southbound convoy on 17 Mar.

Group West reports that the assignment given by the Naval Staff on 4 Mar.
194l (to cut the cable between Vigo and the British Isles) had to be
postponed again because ships "13 and "24" were transferred to Norway.

2. Channel Coast ;

Enemy Situation ;

Radio intelligence Intercepted reports of British vessels
about sighting a German PT boat 93 miles east of Lowestoft at 0725 f and
4 German PT boats 75 miles east of Lowestoft at 1105.

Own Situation ;

According to the brief report of the 5th Torpedo Boet Flotilla
about the engagement during the night of 13 Mar., the encounter with
the destroyers took place inside a British minefield \n quadrant BF 3358.
2 mines exploded 300 meters ahead of the SEEADLER, after 8 explosions
had been heard previously. It is therefore not at all unlikely that
the enemy forces laid mines shortly before the encounter. During the
engagement the FALKE probably scored a torpedo hit on 1 destroyer. The
ILTIS noticed 1 enemy destroyer listing. The JAGUAR definitely observed
one 10.5 cm. hit on the leading enemy destroyer. On the JAGUAR one man
was badly and one slightly wounded.

For copy of the brief report see Telegram 0750.

At 1715 twenty to thirty Spitfires attacked the 1st and 2nd Minesweeper
Flotillas on operations between Le Havre and Cherbourg. At 1730 ship
"28" continued her voyage from St. Malo westward.

Operations of the 4th PT Boat Flotilla against the northbound convoy
during the night of 14 Mar. at buoy ^ E were unsuccessful. The flotilla
was surrounded by 7 enemy destroyers at 2340. There were several 4 cm.
hits on PT boat S "51", severely wounding 5 members of the crew; several
men were slightly wounded on PT boat S "110". Unusually low visibility
primarily accounted for the fact that the enemy did not score more hits,

- 153 -

15 Mar. 1942 CONFIDENTIAL

although he had located our vessels accurately. For copy of the brief
report see Telegram 1553.

The simultaneous operation of the 2nd PT Boat Flotilla against the
southbound convoy at buoy 57 E was very eventful. Because of the very
low visibility 2 of the vessels ran into the end of the convoy, and PT
boat S "104" sank 1 two-stack enemy destroyer with 2 single shots.

At 0400 the flotilla was located and chased by destroyers. The bridge
on the S "104" received a 12.7 cm. hit. By 0900 all vessels except the
S "111" had entered Ostend. After being notified by the Commander, Tor-
pedo Boats that an engagement between an enemy motor gunboat and a Ger-
man PT boat had been reported at 0730 in quadrant 8528, the flotilla com-
mander departed once more with 3 vessels, and met the S "111" in quadrant
8524 engaged with 3 enemy motor gunboats which were chased off to the
northeast. One of the enemy vessels was damaged severely; further
pursuit had to be abandoned because of engine failure. The S "111" was
found sinking and completely stripped. She sank at 1409. While attempt-
ing to bring her in our force which had no fighter escort was attacked
intermittently by 11 enemy planes. There were 7 dead on the S "111",
among them the captain, Lt. Popp, and a midshipman. 16 men were missing,
and it io assumed that they were taken prisoner by the enemy. All our
other vessels received hits during the Spitfire attacks and are out of
commission. There were 5 severely and 8 slightly wounded men.

For brief report see Telegram 2120.

The sinking of the enemy destroyer more than makes up
for the loss of PT boat S "111". In view of our inade-
quate forces it is particularly important that the enemy
be made to feel that the convoys, which he is taking
more care to guard lately, mainly by means of PT boats
and destroyers, are not without risk.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

The 6th Flotilla postponed its departure from Heligoland to
Norway because of the weather.

In the afternoon enemy planes were active over the Dutch coastal area.
1 plane was probably shot down by antiaircraft artillery.

2. Norway ;

Enemy Situation ;

According to photographic reconnaissance, there were 1 light
cruiser, several destroyers, and 16 steamers totalling 60,000 to
70,000 GET in Murmansk. The 5th Air Force is probably correct in assum-
ing that convoy PQ 12 has arrived. Air reconnaissance reported 9
steamers in the Iokanga area.

Own Situation ;

The 8th PT Boat Flotilla is scheduled to carry out an opera-
tion off the arctic coast during the night of 15 Mar. Convoy and escort
operations are proceeding according to plan. Steamer NICOLE SCHIAFFIN0

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\ r j Mar. 1942 . CONFIDENTIAL

sank near Tromsoe after scraping bottom.

As the result of the Fuehrer's directive about closer cooperation between
the Navy and the Air Force along the Finnish-Norwegian coast by combining
the staffs, or at least by exchanging liaison officers (see War Diary
14 Mar., Special Items), the Naval Staff plans to attach a liaison of-
ficer to the 5th Air Force, and to suggest that the Air Force Operations
Staff attach an Air Force liaison officer to the Admiral, Arctic Ocean.

Group North is ordered (copy to the Commanding Admiral, Norway) to express
an opinion immediately about other measures necessary in this connection,
and to take other steps to eliminate shortcomings in communications be-
tween the Navy and the Air Force. See l/Skl I a 6143/42 Gkdos. in War
Diary, Part C, Vol. Ha.

Group North informs the Fleet; Commanding Admiral, Battleships; Com-
mander, Destroyers; the Commanding Admiral, Norway (with copy to the
Naval Staff) about the experiences gained in the TIRPITZ operation
against the northern convoys.

For copy see l/Skl 6077/42 Gkdos. in War Diary, Part C, Vol. Ha.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

The SCHLESIEN convoy is still in the Gjedser Strait. Icebreaker CASTOR
has left Swinemuende to come to its aid.

Group North asks and receives the approval of the Naval Staff for carry-
ing out pending urgent tasks in the following order:

1. The SCHLESIEN convoy is to be assisted and brought to Kiel,
so that the troop transport can proceed to Hamburg.

2. Subsequently the CASTOR is to bring the troop transports from
Swinemuende in order to transport troops from Copenhagen to Oslo.

3. The CASTOR is not to leave for Riga until the Oslo transports
can proceed without her aid, and until the ice situation permits the
voyage to Riga.

V. Submarine Warfare

1. Enemy Situation :

According to the radio intercept service, the ILLUSTRIOUS was
at sea in the Greenock area, 1 ship northwest of Rockall Bank, and 1
ship 250 miles southwest of Porcupine Bank. The British steamer PERELLE,
the Dutch steamer ALHENA, and the American steamer PULLER were probably
damaged by collision.

According to an Italian report convoy SL 99-102 was located on 1 Mar.
at approximately 230 n, 210 w on northerly course, speed 7 knots. One
of the ships in the convoy was sent to Gibraltar the same day.

According to the radio intercept service, steamer AREAN and U.S. tanker
ARIO (6,952 GRT) were torpedoed south of Cape Lookout. 2 steamers

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15 Mar. 19^2 CONFIDENTIAL

reported sighting submarines, one of them the U.S. steamer BERWIMDGLEN
(4,411 GRT) south of Long Island.

The Naval Attache at Buenos Aires reports that a rumor is current in
naval circles there that the QUEEN MARY has been torpedoed; the rumor
is most probably incorrect.

According to the official German news agency (DNB), a German submarine
sank the British steamer BRADFORD CITY off the coast of South Africa.

2. Ovn Situation :

Successes ;

Submarine U "158" (Lt. Rostin) reports also sinking a coast
guard vessel on 11 Mar., a tanker of at least 12,000 GRT and a ship
which was presumably the MERCURY SUN (8,893 GRT) oh 13 Mar. Steamer
OLEAN (7,018 GRT) was left sinking, and with the last torpedo a hit was
scored on steamer ARIO (6,952 GRTJ, which was subsequently set aflame
by gunfire. All these ships were in the vicinity of Cape Hatteras^ f

Submarine U "101" (Lt. Achilles), which is out of torpedoes, reports
sinking the U.S. steamer ACADIA (6,185 GRT) by gunfire.

For supplementary situation report see War Diary, Part B, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity :

26 planes dropped mines in the Thames during the night of
15 Mar.

2. Mediterranean Theater :

The Commanding General, Armed Forces, South reports that the
reinforced air forces attacks on Malta have begun according to plan. A
concentrated attack on the antiaircraft positions in the Valletta area
with good effect initiated these operations.

3. Eastern Front :

7 planes made a surprise attack on the harbor of Murmansk dur-
ing the niglit of 14 Mar. 8 explosions other than bomb explosions were
heard .

For the directive of the Commander in Chief, Air to the 5th Air Force,
see War Diary, 14 Mar., Situation Norway. The Air Force Operations
Staff has ordered the 5th Air Force to report by 17 Mar. agreements
reached with naval commands.

VII. Warfare in the Mediterranean
1. Enemy Situation :

A cruiser of the DELHI class left Gibraltar In an unknown

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15 Mar. 1942 CONFIDENTIAL

direction during the night of 14 Mar.

2 PT boats were sighted on easterly course at 1630 northeast of Cape
Serat. (This Is the first time enemy PT boats have been sighted in
this area.) According to Italian air reconnaissance 8 destroyers were
seen at 0740 at 35° 33' N, 30° ^5' 2 on 150O course. The Italian Navy
believes that these were British destroyers returning from a mine oper-
ation between Scarpanto and Rhodes. The radio intercept service bears
out this assumption, reporting that there are light forces in the
Cypress area.

Submarines were sighted near Lampedusa, Cape Matapan, and Cape Sparti-
vento.

The radio intercept service intercepted a message from a Malta reconnais-
sance plane that a submarine attacked an Italian merchant ship escorted
by a 'destroyer 38 miles southeast of Lampione.

According to an Italian agent report 2 submarines with personnel and
supplies left Egypt for Malta on 1 or 2 Mar., in other words British
transport submarines i I

2. Own Situation ;

The mine operation of the 3rd PT Boat Flotilla off Malta was
carried out according to plan in the night of 14 Mar. Another mine op-
eration is being carried out in the night of 15 Mar.

The 6th Motor Minesweeper Flotilla is ready for operations. It will
leave La Spezia on 13 Mar. after adjustments.

3 . Situation Italy :

According to a report from the German Consul General in
Tirana concerning the unfavorable situation of the Italians in Montene-
gro, 2 or 4 British submarines are operating along the coast of Monte-
negro, supplying the insurgents with war materiel, and in return they
receive food and fuel, which the Italians are forced to deliver to the
rebels. The same report mentions secret Italian connections with the
insurgents, and delivery of weapons.

According to the report of the Naval Attache, Rome about Italy's economic
situation in February 1942, It Is interesting to note that of 250 tons
of cellulose delivered by Germany per month, only 65 tons per month
were used for powder, while 85 were used for rayon, 50 for films, and
50 for celluloid. Under these circumstances it Is understandable that
the German war economy officer in Italy is to be refused any insight
into the general economic situation, including the armament industry.

4. Transport of Supplies to North Africa :

Ship movements are proceeding according to plan without
special incidents.

5. Area Naval Group South ;

Aegean Sea :

The search for survivors of submarine U "133" was unsuccessful.
The BARLETTA has started out on her assignment.

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15 Mar. 19^2 ( CONFIDENTIAL

Black Sea :
Nothing to report.

VIII. Situation East Asia

1. Enemy Situation :

From the continuation of the Admiralty report about' the naval
battle in the Java Sea on 27 Feb. and the following days it is evident
that the following ships were lost: EXETER, the Dutch cruiser DE
RUYTHER, JAVA, the Australian cruiser PERTH, British and U.S. destroyers
JUPITER, ELECTRA, ENCOUNTER, STRONGHOLD, and POPE, the Dutch destroyers
KORTENAER and EVERTSEN, and the Australian corvette YARRA. For trans-
lation of the complete report see the appendix of No. 6j> of the Foreign
Press Reports, Naval Intelligence Division.

The report confirms the overwhelming victory of the Japanese in this
battle, and mentions the loss of several more destroyers than the Japan-
ese. However, it does not mention the fate of the U.S. cruiser HOUSTON,
which the Japanese claim was lost.

2. Situation Japan :

The Military Attache at Bangkok reported on 13 Mar. as follows:

a. Indochina: a newly organized mountain division has ar-
rived in Saigon for the Burma front.

b. Burma: unified warfare is impossible for the enemy in
the Irrawaddy delta; he is retreating in the direction of Bassein.

c. Australia: an air raid lasting half an hour was carried
out against Melbourne.

d. New Guinea: the Japanese are advancing north from huon
Gulf. The Australians are launching heavy air attacks on this area.

Enemy planes attacked Rabaul. (

LX. Army Situation

1. Russian Front :

S outhern Army Group :

Repeated and often strong enemy attacks were repulsed in the
Crimea. The enemy is expected to launch a large-scale attack north of
Taganrog. Enemy attacks near Slavyansk were unsuccessful.

North of Blshkin Russian forces which had broken through on 14 Mar.
pushed the Hungarian hussars to the west. Fierce fighting is in progress
west of Balakleya. Tank divisions coming from the west repulsed enemy
units advancing between Saltov and Volchansk.

Central Army Group :

Fighting in the Sukhinichl area continues. The 4th Army re-

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15 Mar. 1942 CONFIDENTIAL

pulsed attacks west of Yukhnov. Enemy forces penetrated our lines north-
east of Gzhatsk. Likewise enemy troops gained ground at the former
penetration point west of Rzhev. We have thrown in all available forces.
The supply routes are blocked by snow drifts.

Northern Army Group :

The enemy has increased his activity in the rear area north
of Demyansk. He is bringing up parachute troops. Our troops are exert-
ing pressure on Staraya Russa and the Volkhov pocket.

2. Finnish and Norwegian Front ;
Situation unchanged.

3. North Africa ;

Normal scouting activity on both sides.

**#***#*###***#*#**♦*•*#*♦

I

- 159 -

CONFIDENTIAL
16 Mar. 1942

Items of Political Importance

U.S.A. and Great Britain ;

According to Reuter the British Isles are to get four fifths of all
American exports of milk, eggs, pork, and lard in 1942. More than
2,000,000 tons of food are expected to be exported to all allies.

Brazil ;

Anti-Axis demonstrations are still being made. The police have had to
use guns .to break up the demonstrators.

According to the Associated Press the Brazilian government has confis-
cated 12 Italian and 4 German ships totalling 113,000 GRT in retaliation
for the 4 Brazilian ships sunk.

Spain and Argentina ;

According to the press, the Spanish Foreign Ministry has announced a
far-reaching financial and economic agreement with Argentina, which
provides for the exchange of goods valued at 500,000,000 pesetas.

Near East ;

According to the Transocean News Service reporting from Ankara, Russian
troops are advancing on the oil region of Mosul. British troops are
continuing to withdraw from the western provinces of Iran.

Turkey ;

According to the German News Agency, another Turkish ship was sunk by a
Russian submarine inside territorial waters in the Black Sea.

Japan ;

The British and American press are discussing future Japanese plans. In
Washington the impression is growing that Japan will attack Vladivostok
and the Russian Pacific coast in the spring or summer. London, on the
other hand, tends to believe that Japan will be so occupied in the
Pacific and India that she will be unable to attack Siberia. In any
event, Russia is making all preparations for the defense of Vladivostok.

Conference on the Situation with the Chief, Naval Staff

I. The Chief, Naval Staff Quartermaster Division reports that the SS
has requested that sufficient shipyard facilities be allocated to con-
struct 100 motor ships of 300 tons eaoh and 50 monitors for use in the
Black Sea.

The Chief, Naval Staff orders that this request be rejected, pointing
out that such projects are exclusively the responsibility of the Navy.

II. The Chief, Naval Staff Quartermaster Division reports about the
Croatian volunteers in the Navy. The original plan to organize separate
Croatian units has been abandoned due to the objection raised by the

- 160 -

16 Mar. 1942 CONFIDENTIAL

Chief, Naval Staff Communications Division about providing these units
with secret code material and similar equipment. Instead, these troops
could be trained and then used individually on German ships.

The Chief, Naval Staff agrees.

III. The Chief, Naval Staff orders that no valuable ships should enter
Narvik until the antiaircraft batteries in Bogen Bay have been reinforced
as planned.

IV. The Commanding General, Armed Forces, West has pointed out that the
Army must reinforce the defenses of submarine bases to such an extent
that the enemy will be unable to occupy them even temporarily, as in
raids. The Chief, Naval Staff orders that a request to this effect be
directed to the Army High Command.

V'. The Naval Staff Operations Division, Foreign Affairs Section reports
about French counterdemands in return for permitting 4 additional PT
boats to pass through French territory into the Mediterranean. (Release
of 3,500 prisoners of war on leave in occupied France.) The Armed For-
ces High Command has agreed, and the prisoners are to be released as
soon as the PT boats have been transferred through France.

The Italian Armistice Commission has now dropped its objections against
repairing the DUNKERQUE. For details see War Diary, Part C-, Vol. VIII.

According to a report of the Naval Liaison Officer at the Armed Forces
High Command, the Fuehrer has approved the suggestion of the Foreign
Office that Turkey be offered war materiel, possibly even submarines,
in return for permitting German warships (submarines) to cross the
Dardanelles.

VI. The Chief, Operations Branch, Naval Staff Operations Division re-
ports about the Fuehrer directive (see War Diary 14 Mar.), and the Naval
Staff's request that Group North submit suggestions about appointing
liaison officers in accordance with this directive. (See War Diary

15 Mar.)

VII. According to reports from the Commanding Admiral, Norway and Group
North, the attack on the Rybachi Peninsula will probably have to be
postponed until fall, since supplies and troops cannot be brought up
by 15 Apr., which is the deadline if the operation is to be carried out
in the spring. The matter will have to be decided by the Armed Forces
High Command.

If the attack should be postponed, it would be well to recall Commander
Busch temporarily to Germany, so that he can acquaint himself with land-
ing experiences at the Naval High Command and the Admiral, Amphibious
Forces and then return to Petsamo.

The Chief, Naval Staff agrees.

VIII. See l/Skl I op 562/42 Gkdos. Chefs, in War Diary file "Felix" for
the order to Group West, the Commanding Admiral, France, and the Naval
Staff Quartermaster Division extending the preliminary warning period
for operation "Felix".

IX. The Armed Forces High Command transmits the following order of the
Fuehrer :

1. Since an aircraft carrier is indispensible for naval opera-
tions, the GRAF ZEPPELIN is to be completed as quickly as possible.

- 161 -

I

16 Mar. If- CONFIDENTIAL

The ship planes are to consist of fighter, reconnaissance, and
torpedo planes.

J>. The Commander in Chief, Air will be responsible for providing
suitable planes and crews at the appropriate time.

4. retails are to be worked out between the Commander in Chief,
Navy and Commander in Chief, Air, beginning at once.

The Commander in Chief, Navy is asked to inform the Fuehrer through the
Armed Forces High Command when the ship can be expected to be commissioned
and ready for operations .

The War Economy and Armaments Division of the Armed Forces High Command
requests the same information as well as data on the materials and man-
power needed.

The Chief, Naval Staff would like to see the data before it is sent on
to the War Economy and Armaments Division of the Armed Forces High Com-
mand .

The Naval Staff Quartermaster Division will take care of the matter.
See l/Skl I a 612/42 Gkdos. in War Diary, Part. C, Vol. V.

Situat ion^ 16 Mar .

I . V r ar in Foreig n Waters

1. Enemy Situation :
Nothing to report.

2 . Own Situation :

Radiogram 1826 contains sailing instructions for tanker
GERMANIA .

According to information from the Japanese Liaison Officer, the latest
report from Tokyo indicates that the area south of 10° S and west of
80° E is the only one in which German auxiliary cruisers can be permitted
to operate. In an emergency this line can be crossed by agreement.
This limitation is necessary because Japanese operations in this area
will get under way in the near future.

Radiograms 1418, 1544, and 2119 contain information on the enemy situa-
tion.

II. Situation We3t Area

1. Enemy Situation :

The Admiralty reports about the engagement in the Channel be-
tween the convoy of ship "28" and naval forces the night of 13 Mar. Ac-
cording to this report, 1 German PT boat was blown up, and another one
was sunk, while the British suffered only slight damage and no losses.

- 162 -

16 Mar. 19^2 CONFIDENTIA L

As a matter of feet there were no German losses.

2. Own Situation :

Atlantic Coast :

Radiogram 1826 informs Group West about the sailing instruc-
tions to tanker GERMANIA.

Channel Coast :

Harbor patrol boat "97" sank near Dunkirk as the result of a
mine hit. 6 are dead or missing. It is possible that the ship, which
has a considerable draft, hit an old mine that had been sunk by gunfire.

Ship "28" proceeded according to plan. The 4th PT Boat Flotilla laid
mines according to plan northeast of Orfordness the night of It Mar.

III. North Sea, Norway, Arctic Oc ean

1. North Sea :

4 vessels of the 6th PT Boat Flotilla left Heligoland for
Stavanger .

Convoys proceeded according to plan without special incidents.

2. Norway :

Enemy Situation:

t

Radio Rugby issued a warning about mined areas near Kristian-
sund and the Trondheim Fjord, based on reports In the Norwegian press.
Air reconnaissance located 1 cruiser, probably of the KIROV class, and
1 destroyer in Kola Bay. There were 2 submarines in Polyarnoye.

Own Situation :

The northern mine ship group (COBRA and BRUMMEF.) entered
Kirkenes on 15 Mar.

On 16 Mar. steamer UTLANDSHOERN sank off Fetsamo as the result of an
explosion, the cause of which has not been determined as yet. It may
have been a mine.

Mine ship ULM has left for the first part of the mine operation near
the Helnes lighthouse.

Convoy and escort service according to plan.

Group North is instructed as follows (copies to the Commanding Admiral,
Submarines and the Admiral, Arctic Ocean; concerning the assignment of
the 20 submarines provided for the defense of Norway:

a. They are to disrupt enemy supply lines in the Arctic
Ocean and outside the ports of destination.

"b. They are to disrupt enemy transport movements outside of
the ports of departure.

163 -

16 Mar. 1942 CONFIDENTIAL

c. They are to detect and hamper enemy landing plans In the
I,orway area.

The main task at the moment is that described under point a. Once more
it is pointed out that Group North should direct the operations of the
20 submarines in accordance with its responsibility for naval warfare in
the North Sea and the Arctic Ocean and the protection of Norway.

For copy see l/Skl I u 613/42 Gkdos. Chefs, in War Diary, Part C, Vol.
Ila.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation :

A plane reported a submerged submarine at 1050 in quadrant
A0 4454 (west of Skagen), evidently in connection with the departure of
the Norwegian ships from Swedish harbors.

2. Own Situation ;

Ship "7" and 1 patrol boat went out after the submarine in
quadrant A0 4454. The Commanding Admiral, Defenses, Baltic Sea informed
all ships at sea about the submarine sighted near Skagen.

The SCHLESIEN group is still in the same place in the Gjedser Strait.

See Telegram 1717 for steps taken by Naval Station, Baltic Sea to rein-
force the air defenses of Gdynia in view of the impending transfer of
the GNEISENAU.

For copy of the report of the Coastal Defense Commander, West, trans-
mitted by Naval Station, Baltic Sea, concerning the smoke screen defenses
and experiences during the last air attacks on Kiel see l/Skl 6187/42
Gkdos. in War Diary, Part C, Vol. III.

See Telegram 1152 for requests of Naval Station, Baltic Sea that a rail-
road antiaircraft battery of the Air Force be stationed in Kiel tem-
porarily; Telegram 1716 contains a request for 6 additional "Wuerzburg"
radar sets. The Naval Staff Quartermaster Division is taking care of
the matter.

V. Submarine Warfare

1. Enemy Situation :

In the South Atlantic a submarine warning was issued for the
area 40 miles west of Capetown. Since no German submarines are in that
area it is possible that the minefield laid by the DOGGERBANK in that
area has scored another success.

Numerous SSS signals were intercepted from ships along the North American
East Coast. Among these were U.S. steamer BEATRICE (3,451 GRT), British
steamer BRIGITTE (1,595 GRT), British tanker SAN DEMETREO (8,073 GRT),
which was torpedoed, all of them from the area east of the Chesapeake
Bay; U.S tanker AUSTRALIA (11,628 GRT) was torpedoed off Cape Hatteras

- 164 -

16 Mar. 19^ CONFIDENTIAL

and abandoned by her crew? British tanker BPJTISH RESOLUTION (8,408 GRT)
also sent an SSS signal from the vicinity of Cape Katteras.

According to a radio message 3 rafts and ship debris were sighted west
of Trinidad.

2. Own Situation :

The Irish steamer IRISH WILLOW (1,000 GRT) was released by
radio order of the Commanding Admiral, Submarines after being searched
by submarine U "753" northwest of Porcupine Bank.

Tanker SAN DEMETREO was probably sunk by U "404". U "504" sank an armed
7,000 GRT steamer northeast of the Bahamas. She was evidently carrying
ammunition, motor vehicles, and plane parts. The ship could not be iden-
tified, since she blew up.

No reports have been received from the submarines in the South Atlantic.

In the Mediterranean submarine operations were concentrated off Tobruk
in the night of 17 Mar.

For supplementary situation report see War Diary, Part C, Vol. IV.

See Situation Norway for orders concerning vessels in the northern area.

VI. Aerial Warfare

1. British Isles and Vicinity ;

Air reconnaissance along the English coasts resulted in no
information of importance.

On 15 Mar. a FW 200 of the Air Commander, Atlantic Coast sank the
British steamer DAGO (1,750 GRT) off Lisbon.

2. Mediterranean Theater ;

The weather hampered air operations against Malta.

For photo reconnaissance of Alexandria see Enemy Situation, Mediterranean
Warfare.

3. Eastern Front ;

Reconnaissance planes were active in the Black Sea and the
Arctic Ocean. The Air Force Operations Staff ordered the III Group of
the 1st Tactical Experimental Wing transferred at once to the Black
Sea for the purpose of attacking ships in that area.

VII* Warfare in the Mediterranean
1. Enemy Situation ;

k destroyers and 2 gunboats were observed leaving Gibraltar.
A German submarine sighted a periscope 50 miles south of Ostia. Between

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16 Mar. lr^2 COKF IAL

ighazl and Alexi air reconnaissance sighted only 1 convoy. in the
af ternc . steamers a escort vessels proceeding on
ncrthvesterly cc lea vest c: .Alexandria. The Italian Navy re-
ported that 1 si:": re -as sighted northeast of Cape Spartivento.

reconr.aissar. : Alexandria shoved that there were 2 de-

ers and 3 small cruisers mere than on 10 Mar.

2. : vr. Situation :

The n. at ion of the 3rd PT Boat Flotilla off Malta was
ried out acccrtir.g to rlan during the night of 15 Mar. The flotilla
11 carry out a similar operation during the night of 16 Mar.

3. Situation Italy :

nemy planes attacked Benghazi during the night of 15 Mar. 2
of them vere shot down.

"4. Transport of Supplies to North Africa :

According to an Italian report the 4 th transport group carried
688 vehicles, S,64o tons of Armed Forces supplies, and 4,571 tons of
fuel, in addition to 145 men.

The 5th transport group, vith steamers REICHENFELS and PISANI, departed
according to plan on 16 Mar. Steamer GRZGCRI has departed for Tripoli
by the western route. Steamer 3CSF0R0 left Taranto for Benghazi on
15 Mar. Steamer TRAPAHI vas toved into Trapani on the return voyage
Cram Tripoli on If Her. because of engine failure.

Coastal traffic by naval barges without special incidents.

5. Area Haval Group South:

Aegean Sea :

Snemy Situation :

The Italian Navy reported that a submarine vas sighted east
of Cape Stavros (Crete).

Own Situation :

Auxiliary cruiser BARLETTA has carried out her mining operation
according to plan. The al assignment of the Italian subchasers
was broken off prematurely because of the weather. The operation is to
be repeated on 21 Mar.

Convoy operations proceeded without special incidents.

According to a report from Naval Group South, it is definite that sut -
marine U "133" probably due to faulty navigation, passed through the
minefield itself instead of the gap near Cape Turlos. No survivors or
debris have been found as yet.

Because of the shortage of anti-submarine forces, Group South has ordered
submarine traps to be used in the Aegean as well as in the Slack Sea.
In the Aegean Sea 5 auxiliary sailing vessels will be used as an emer-
gency measure to begin with; in the Black Sea motor ship RILA (185 GRT)
and 1 naval barge will be used.

The Haval Staff Quartermaster Division will handle the matter. (See

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16 Mar. 19^2 CONFIDENTIAL

Telegram 1800. )

Black Sea :

Enemy Situation ;

At 0530 on 15 Mar. Feodosiya was bombarded from the sea. In
the night of 15 Mar. a landing attempt at Klaronka was repulsed by an
Army coastal battery.

Air reconnaissance reported lively shipping traffic to and from Sevas-
topol and Kerch. For details see Air Situation.

Own Situation :

Nothing to report.

VIII. Situation East Asia

1. Enemy Situation ;
Nothing to report.

2. Situation Japan :

According to a report from the Military Attache at Bangkok,
parts of the Army Air Force which become available in the Southwest
Pacific are being transferred to Manchukuo. In this connection the re-
port from the German Embassy at Nanking is noteworthy, in which it is
said that the Japanese High Command believes it possible that the Russo-
Japanese conflict might break out this month.

All enemy resistance has stopped on Sumatra and Java.

IX. Army Situation

1. Russian Front :

Southern Army Group :

Fighting continues on sectors of the Crimean front without
any decisive change in the situation.

Enemy troops are concentrating in front of the Von Kleist Army Group.
A number of local attacks were unsuccessful.

The 6th Army repulsed all enemy attacks.

Central Army Group :

Vesnlni was held in the face of strong attacks. Lively com-
bat activity continued at the main points of earlier enemy attacks
(Deraenskoye, Yukhnov, Vyazma, Rzhev, and Velizh). The railroad from
Rzhev to Vyazma is again in our hands.

Northern Army Group :

- 167 -

15 Mar.

Also In this sector local eneray attacks at Kholm, In the ?ola
valley, near Staraya Russa, west of Ysunno, and near Maluksa were unable
to change the situation.

2 . Finnish and Norwegian Front :

Situation unchange
J>. North Africa ;

Enemy situation unchanged.

The German Africa Corps successfully carried out armed reconnaissance
against El Mogaresh for the purpose of diverting the enemy's attention
from operations to relieve our troops.

*************************

- 168 -

CONFIDENTIAL

17 Mar. 1942

Items of Political Importance

Norway :

See Political Review No. 64, paragraph 1, for a report on the unchanged
dissatisfied state of public opinion in this country.

Great Britain :

A British computation of war potentials estimates that of Germany at
100, of America at 200, Great Britain 80, Russia 60, the Dominions and
India 30, Japan only 40, Italy 20, and the other countries occupied hy
the Axis 25; thus the Axis have a potential of 185 as against 370 of
the Allies. At the moment, however, the U.S. produces only as much as
Germany.

Because of paper shortage further restrictions have had to be imposed
on the press. The Food Minister has declared that it will be difficult
to maintain the meat rations at the present level.

Halifax declared in New York on 16 Mar. that the Allies will certainly
not leave the initiative in the hands of the enemy. The enemy has now
reached the capacity of his industrial and military power, and can in-
crease either in the future only at the expense of the other. Calling
attention to the unused American reserves, he appeals to faith in the
Allied cause, which is the only thing that enabled England to s'urvive the
past fall and winter.

Indo China :

So far Japan has not made any final decision about the fate of this
country. However it may be assumed that the French administration will
not continue indefinitely.

Japan :

The Japanese press stresses particularly that it might be wise to use
diplomatic rather than military tactics against India, Australia, China,
and Russia. With regard to India it is said that Nehru and other cir-
cles, in contrast to Ghandi, are ready for negotiations with Cripps.
Japan has no designs on India herself, but only wishes to free this
country from the British yoke, so that she may become an active partici-
pant in the reorganization of East Asia. (This would mean "under Jap-
anese leadership . )

The new ambassador to Moscow, Sato, stated that he believes it might be
possible that Japan will celebrate her victory in London and the Japan-
ese fleet will parade in victory at New York. (.')

U.S.A. :

Sumner Welles announced that the Swedish steamer DR0TTNINGH0LM (11,055
GRT) has been chartered to take German and Italian diplomats from
America to Lisbon, and U.S. personnel from Europe to the U.S. Thereafter
the ship will take Japanese diplomats from America to Lourenco Marques,
where they will be exchanged for British officials from the Far East.

- 169 -

17 Mar. 19*2 CONFIDENTIAL

Conference on the Situation with the Chief, Naval Staff

I. The Chief, Operations Branch, Haval Staff Operations Division re-
ports on the results of the investigation ordered "by the Chief, Haval
Staff on 27 Pet. concerning protection of the Trondheim approaches,
i.e., Frohavet, Ramsoe Fjord, and Griphoelen, and elimination of the
gap in the minefield in Trondheimsleden (see War Diary 27 Feb.) Group
North reports the mining operations planneO by the Commanding Admiral,
Norway in this connection and the number of mines needed, and states
that it approves these plans provided the Ramsoe Fjord barrage is laid
last. For copy of report see l/Skl 6177/42 Gkdos. in War Diary, Part
C, Vol. Ila.

The Commanding Admiral, Norway has not yet finished the investigation
concerning elimination of the gap in the minefield in the Trondheims-
leden.

The Chief, Naval Staff approves, and calls attention to the fact that
the large number of mines needed for this task should have been shipped
at once to Horway, In spite of the difficult transport and storage con-
ditions.

II. The Chief, Operations Branch, Naval Staff Operations Division re-
ports on the cargo of the TANNENFEL3, which is en route to Japan. It
consists of 3»390 tons of machines and machine parts, 2*0 tons of iron
and steel, 350 tons of boilers and related equipment, 180 tons of agri-
cultural machinery, 75 tons of scientific equipment, electrical equip-
ment, 5 tons of cameras, films, and related equipment, 700 tons of
chemical and pharmaceutical products, 870 tons of fertilizer, 435 tons
of dyes, etc.; a total of 7,250 tons.

III. A report is also made on Japanese landing tactics and a chart is
demonstrated which was drawn up by the Naval Intelligence Division,
showing U.S. bases. The consistent geopolitical principle underlying
the U.S. policy of expansion is clearly evident in this chart. The

ef, Naval Staff will prese.nt this chart to the Fuehrer during the
next conference.

IV. The Chief, Naval Communications Division reports that the TANHEH-
FELS did not take along any radar set for the Japanese Navy, sinee no
Japanese officer was sent to be instructed as to its use.

V. The Chief, Nava] Staff Quartermaster Division reports that another
battleship berth has been completed in the Lo Fjord near Trondheim. He
also reports about the contradictory orders issued to torpedo boat T *4"
by the Naval Staff Construction Division and Group North. The Chief,
Naval Staff will discuss the matter personally with the Commanding Ad-
miral, Group North after receiving Group North's report, since it is not
justifiable as things stand to blame Group North alone.

VT. The Chief, Haval Ordnance Division reports on the importance of the
coal problem, on the British wire rockets, new U.S. antiaircraft cruisers,
and serious damage to the torpedo dump at Kiel during the enemy air at-
tack on the night of 12 Mar., which has upset torpedo deliveries for
about a month and a half.

A further report is made in connection with the Fuehrer's reproach that
the branches of the Armed Forces did not pay sufficient attention to
the problem of scarce raw materials. It is pointed out that as early as
September 1934, in other words 5 years prior to the Fuehrer directive
dealing with this question, the Navy had begun to take energetic steps
to introduce substitute materials. For example, steel cartridge cases,

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17 Mar. 19^2 CONFIDENTIAL

steel rotating bands for missiles, nickel in armor plating replaced by
molybdenum, etc. As ordered, the Armed Forces High Command has been
kept constantly informed about the progress of these very considerable
developments since 1939.

The Chief, Naval Staff is prepared to report the essential points of
this program to the Fuehrer.

VII. The Chief, Naval Construction Division reports about the stage
reached in the construction of the GRAF ZEPPELIN.

VIII. The Chief, Operations Branch, Naval Staff Operations Division re-
ports that permission has been given to drop aerial mines in the har-
bors of the English west coast, and that the legal arrest on the Nor-
wegian ships in Goeteborg has just been lifted.

A report is also made about the change in the orders issued by Group
North for the transfer of the HIPPER to Trondheim; the waiting period
in the Skagerrak has been cancelled. The operation is to start on

18 Mar. The Trondheim forces have been ordered on J> hour readiness at
the berth.

A report is made about the submarine situation. The Chief, Naval Staff
believes thai; it is regrettable that submarine operations in the Carib-
bean Sea are temporarily coming to a standstill, and he directs that
the Commanding Admiral, Submarines be informed to this effect.

Investigations of possibilities for operating in the Panama area have
shown the inadvisability of such plans, in view of very strong land
fortifications and the fact that the water is generally too shallow in
the Canal approaches.

A report is made on the instructions given to Group North concerning
operations of surface forces in the north area on the basis of the ex-
periences gained by the Commanding Admiral, Battleships during the op-
eration against convoy PQ 12. See l/Skl I a 608/42 Gkdos. Chefs, in
War Diary, Part C, Vol. Ila.

The Chief, Naval Staff agrees.

The Chief, Naval Staff likewise approves of the directive to Group
North (copy to the Commanding Admiral, Submarines) concerning authority
over and tasks of the submarines in the north area, whose main task at
the present time consists in disrupting enemy supplies in the Arctic
Ocean and outside of the ports of destination, Murmansk and Archangel.
See l/Skl I u 613/42 Gkdos. Chefs, in War Diary, 16 Mar.

The Chief, Naval Staff approves the plan of the Naval Staff to transfer
the available destroyers from Trondheim to the north in the near future;
torpedo boats remaining in Trondheim will insure that the heavy forces
there can continue to operate.

Special Items

An intelligence agent reported on 10 Mar. about the enemy's spring offen-
sive as follows:

Approximately at the end of May the operations indicated below are to
begin simultaneously. The exact date will be set about 2 weeks prior

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17 Mar. 19^2 CONFIDENTIAL

to the start of the operations.

1. A large-scale Russian attack will be launched against Finland,
and 500 British planes with British crews will participate.

An attack will also be launched against northern Finland from Murmansk,
where 2 rifle divisions are ready for this purpose.

2. The British will launch an attack against Norway (probably
Narvik), and Russian air forces will participate.

3. Air raids will be carried out against occupied France, Belgium,
and Holland, as well as against Germany.

4. Air raids will be launched against the Balkan states, par-
ticularly concentrating on Bucharest, Constanta, Ploesti, Harsova, and
Braila.

5. Air raids against Hungary, especially Koloszvar.

6. Pressure on Turkey will be increased by deploying 8 Russian
rifle divisions and 8 British divisions in Iran in the vicinity of Lake
Urmia. The U.S. is to supply all the equipment for these units.

7. Heavy attacks will be made against Italy, especially Sicily
and Calabria.

8. Additional attacks will be made against Libya. General de
Gaulle is to have command of the forces involved. This is the suggestion
made by General Weygand.

Situation 17 Mar .
I. War in Foreign Waters
1. Enemy Situation :

South Atlantic :

Cruiser DIOMEDE was expected in Montevideo on 16 Mar.

Indian Ocean :

According to a report from the French Military Attache in
Athens, the blockade of French Somaliland has been lifted for all prac-
tical purposes. The colony has been supplied with food for about a
year from Madagascar.

According to a report from the Italian Air Force, 2 light U.S. cruisers
and 2 destroyers were sighted within territorial waters near Lourenco
Marques. 2 additional destroyers were in the harbor.

According to the radio deciphering service, on 15 Mar. the Chief, East
India Station ordered the U.S. auxiliary cruiser WEST POINT (which an
agent had reported in Pernambuco on 2 Mar.), en route to the Indian
Ocean, to tune in on a certain wavelength. To judge from her radio mes-
sages, the ship is already in the East Indies. On lh Mar. U.S. subma-
rine S "38" and Dutch submarine K "9" vere in the Australian radio area,

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17 Mar. 19^2 CONFIDENTIAL

2. Own Situation ;

No report has been received from ship "10" since her depar-
ture. The Naval Staff assumes that the ship Is still In the operations
area or withdrawing from there, and believes that she will take on
1,600 cubic meters of fuel oil from the REGENSBURG between 25 and 31
Mar.

Ship "10" is informed of this assumption and ordered to report after
refueling from the REGENSBURG by code the date on which the supply ship
was released. She is also to report her successes and changes if any,
in the amount of fuel she has taken on.

The Naval Staff expects that the REGENSBURG will supply the TANNENPELS
at the latest 5 days after she has been released by ship "10"; if there
is any change, ship "10" is to report when the TANNENPELS can be expected
to release the REGENSBURG.

Since experiences with sending messages outside of the zero beat have
been good, ship "10" is permitted to use this method if necessary.

If it should be necessary for ship "10" to remain longer in the opera-
tions area, the Naval Staff agrees, and will leave supply ships as long
as necessary in waiting position. In this case ship 10 is to send
a code signal when withdrawing from the operations area as to when she
expects to meet the REGENSBURG.

Since it is. intended to send the TANNENPELS through the Indian Ocean to

the Sunda Strait after she has taken on supplies, it is important to

know the date of departure. Ship "10" will be informed of the route to

be taken by the TANNENPELS and the waiting area for the second supply
operation.

Radiogram 0642 informs ship "10" accordingly. Radiogram 1597 contains
information about the enemy situation.

II. Situation Vest Area

1. Atlantic Coast :

Ship "28" has entered the Gironde, and will be ready to depart
on 20 Mar. The 5th Torpedo Boat Flotilla has entered La Pallice.

Air reconnaissance failed to sight the 0S0RN0 or the GERMANIA.

Radiogram 0922 contains plane recognition signals for the 0S0RN0.

2. Channel Coast ;

The 4th PT Boat Flotilla laid mines according to plan. For
brief report see Telegram 07^0.

III. North Sea, Norway, Arctic Ocean
1. North Sea:

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1 Mar. 19 CONFIDENTIAL

Znemy Situation :

:cording to the radio intercept service there vere 3 convoys
in the Thames estuary, and another one was east of The Wash. Air recon-

ssance reported 1 large warship and several escort vessels northeast
of Cromer at 1350, and a total of 12 barrage balloons. Photographic
reconnaissance to confirm these facts was unsuccessful because of fog.
1 convoy consisting of 11 steamers and 2 minesweepers was located east
of Flamborough Head, on northerly course.

Own Situation :

2 vessels of the Rhine Flotilla off Schouwen ran aground in
the fog and are being toved away.

Interrogation by the Intelligence Center, Vilhelmshaven of the 2 Dutch-
men disguised as British officers who were captured at Katwijk confirms
the suspicion that they were attempting sabotage. See Telegram 2350 for
copy of the intelligence report.

Convoy and escort service is proceeding without special incident.

2. Norway :

Enemy Situation :

According to the radio intercept service, 1 British vessel
was in quadrant AN 3717 (100 miles east cf Firth of Forth), and convoy
PQ 13 was in British home waters on 13 Mar. British planes reported 2
southbound destroyers 32 miles northwest of Bergen at 17^5.

Air reconnaissance in the Arctic Ocean reported 7 steamers north of
Murmansk in the morning, and 3 steamers in the Kola bend, evidently
stuck in the ice. It was not possible to reconnoiter lokanga.

Own Situation :

The 6th PT Boat Flotilla entered Stavanger. According to the
Naval Shore Commander at Klrkenes it is possible that steamer
UHLANDSHOERN was sunk by a PT boat torpedo, since engine noises were
heard. However, the search for mines continues.

The ULM executed the mining mission near Heine s lighthouse according to
plan on 16 Mar., and will continue the operation in the Bille Fjord
during the night of 16 Mar., after taking on more mines.

Convoy and transport movements without special incidents.

See Telegram 1710 for the report of the Admiral, Arctic Coast to Group
North about the operations and operations areas of 7 submarines.

For report by the Commanding Admiral, Norway about mines in the Porsanger
Fjord see l/Skl 10433 geh. in War Diary, Part C, Vol. Ha.

See l/Skl 6322/42 Gkdos. in War Diary, Part C, Vol. Ha for plans of
the Commanding Admiral, Norway about an alarm minefield in the Trondheims-
leden as a protection against an attack by heavy enemy surface forces, ■
and his request for approval and allocation of 7* standard mines type
C and 500 torpedo mines type A.

. i \ .

17 Mar. 19^2 CONFIDENTIAL

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation :

On 17 Mar. a court decision lifted the arrest placed by the
Swedish government on Norwegian ships in Swedish harbors. There are 12
loaded ships totalling 60,443 GRT in Goeteborg. In addition there are
10 completed new ships in Goeteborg and Malmoe totalling 88,240 GRT and
probably 3 more totalling 30,500 GRT in Goeteborg and Landskrona. The
loaded ships in Goeteborg can be expected to attempt a breakthrough,
especially since the ice situation in the Skagerrak permits passage.

2. Own Situation:

Group North is instructed that it Is most desirable to prevent
the ships from breaking through or to destroy them. The patrols for the
minefield gaps at Hanstholm and Kristiansand South provided by the Com-
manding Admiral, Defenses, Baltic Sea for 17 Mar. should be taken over
by the Commanding Admiral, Norway on 18 Mar. Group North plans to com-
mit the naval forces if the steamers are seen leaving port. The 5th Air
Force is requested to attack likewise under these circumstances, and to
reconnoiter the area of the Skagerrak and southwestern Norway, since
British covering forces must be expected. (See Telegram 1615.)

Submarine chase in the vicinity of Skagen was discontinued because of
the weather.

The SCHLESIEN convoy is still in the Gjedser Strait.

See Telegram 1600 for the report of the Fleet Command to the Naval
Staff about changes in the gun cables on the SCHARNHORST.

V, Merchant Warfare

1. It may be assumed that the Russian merchant fleet (government
property) consisted of about 2,000,000 GRT at the beginning of the war.
Between 22 Jun. 19^1 and 28 Feb. 19^2, 268 of these ships totalling
560, 137 GRT are estimated to have been lost, among them 21 tankers
totalling 88,220 GRT. For details see report no. 7/^2 "Foreign Merchant
Shipping of the Naval Intelligence Division, Foreign Merchant Shipping
Branch .

2. According to the Transocean News Agency, the Brazilian govern-
ment has approved purchase of the 5 Danish ships in Brazilian harbors.

VI . Submarine Warfare

1. Enemy Situation :

For position of convoy PQ 13 see Enemy Situation, Norway.
Radio intelligence intercepted messages concerning a submarine sighted
60 miles off Long Island, and concerning the torpedoing of the U.S.
tanker ACME (6,978 GRT) off Cape Hatteras.

According to an American radio message, a plane sank an Axis submarine
off the U.S. East Coast. According to Chilean government circles,

- 175 -

17 Mar. 19^2 CONFIDENTIAL

the Vichy Telegraphic Service reported that the Chilean freighter TOLTEN
(3,000 GRT) vas sunk off the U.S. coast.

Radio Cuba picked' up an SOS from a U.S. coast guard vessel from the
vicinity of Guadeloupe. The Svedish steamer SKANE was lost In the
Caribbean Sea.

2. Ovn Situation :

The submarine assigned to meet the tanker GERMANIA was unfor-
tunately unable to locate her. For supplementary situation report see
War Diary, Part B, Vol. IV.

See 1/Skl 6311/42 Gkdos. in War Diary, Part C, Vol. IV for the opinion
of the Commanding Admiral, Submarines and suggested changes in the draft
of Group West of a "directive for cooperation between merchant vessels
and escort submarines".

The Commanding Admiral, Submarines tends to believe that expertly used
and brief radio bearings involve little risk, and recommends that the
Chief, Naval Staff Communications Division give his opinion.

VII. Aerial Warfar e

1. British Isles and Vicinity :

For results of air reconnaissance see Enemy Situation, North
Sea.

2. Mediterranean Theater :

Planes provided escort for the 5th transport group. During
the operation they attacked a surfaced submarine northwest of Benghazi,
but no effects were observed.

During the day bomber and fighter planes made renewed attacks on Malta;
some good effects on airfields were achieved. For the first time planes
were observed on the Krendi airfield.

Reconnaissance missions were flown in the central and eastern Mediter-
ranean.

3. Eastern Front :

Nothing special to report.
For reconnaissance reports see Enemy Situation, Norway.

1

VIII. Mediterranean Warfare

1. Enemy Situation :

The ARGUS, 1 DIDO class cruiser, and several destroyers were
at aea during the day, evidently for maneuvers, and returned to Gibral-
tar in the evening. According to an intelligence report from Spain,
1 warship, evidently a cruiser, and 4 destroyers were sighted off Malaga

- 176 -

17 Mar. 1942 CONFIDENTIAL

on a southwest course on 16 Mar.

According to an Italian report, 2 Greek destroyers entered Malta in the
morning.

German and Italian air reconnaissance reported sighting submarines south-
east of Kuriat (Tunis) and south of Messina. There was little shipping
traffic between Alexandria and Tobruk in the morning.

According to an Italian agent report 1 7,000 GRT cruiser was sunk and 2
others damaged during the air attack on the naval force on 11 Mar. There
were many casualties on all of the cruisers.

2. Own Situation ;

The 3rd PT Boat Flotilla returned from its mining mission. 6
mines exploded about 1 or 2 hours after they were laid. The cause is
being investigated.

2. Situation Italy :

Nothing to report.

4. Transport of Supplies to North Africa ;

The voyages of the 5th transport group and of steamers GREGORI
and B0SF0R0 proceeded according to plan. The transport group was sighted
by British reconnaissance planes between 1045 and 1200, and reported as
consisting of 1 cruiser, 3 destroyers, and 2 steamers.

Libyan coastal traffic is proceeding according to plan without special
incident.

5. Area Naval Group South :
Aegean Sea :

No reports available because of interrupted communications.

The report of the Admiral, Aegean Sea about the results of the conference
between the Italian Transport Minister, envoy Clodius, and the Chief of
Staff of the Admiral, Aegean Sea concerning commercial traffic in Piraeus
and the construction of 24 wooden fishing cutters for the Navy is trans-
mitted to the Naval Staff Quartermaster Division for further considera-
tion. For copy see l/Skl 6299/42 Gkdos. in War Diary, Part C, Vol. XIV.

Black Sea ;

Enemy Situation :

According to the radio intercept service, cruiser E was west
of Tuapse, cruiser A and 1 destroyer somewhere along the central or
southern part of the east coast. 10 to 12 submarines were located at
sea.

Air reconnaissance located lively shipping traffic in the direction of
Kerch. The number of merchant vessels in Novorossisk had diminished
accordingly. In this harbor 1 cruiser and 2 submarines were sighted
burning.

Own Situation ;

During the night of 16 Mar., 3 Russian vessels bombarded

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17 Mar. 1942 CONFIDENTIAL

Feodosiya, Sarigol, and positions northwest of Feodosiya for half an
hour.

Hothing to report about our own naval situation.

Situation France ;

According to a report from the German Armistice Commission,
the French steamer ST. MARCELLE ( 1,518 GRT) was torpedoed between
Marseilles and Turin near Cape Carbon by an unknown submarine on 14 Mar.
at 2000 Central Greenwich Time.

IX. Situation East Asia

1. Enemy Situation ;

According to a report from New York, large U.S. submarines
are supposed to have arrived in Australia after a 5o-day voyage.
Several Japanese aircraft carriers were sighted near the Solomon Islands
and in Australian waters.

The U.S. War Department reports that Flying Fortresses attacked the
Rabaul airfield.

2. Situation Japan ;

Headquarters reports that a Japanese submarine sank a 10,000
GRT tanker on 1 Mar. and a 7,000 GRT steamer on 2 Mar. off the California
coast.

According to a report of the Military Attache at Bangkok, American
troops on Corregidor are estimated at 5,000.

Japanese naval forces are operating in the Torres Strait. Japanese
planes attacked the Thursday Islands. U.S. planes made another large
attack on Huon Gulf (New Guinea). Port Moresby was attacked for the
12th time by Japanese planes.

X. Army Situation

1. Russian Front ;

Southern Army Group ;

Fighting in the Crimea is continuing without any change in
the situation. At the Von Kleist Army Group and the 6th Army several
rather strong enemy attacks were repulsed, partly by counterattacks.

Central Army Group ;

Enemy attacks on our lines south of Sukhinichi, which had
been withdrawn, were unsuccessful.

Fighting is in progress west and northwest of Yukhnov, northeast of
Gzhatsk, northwest of Rzhev, near Byelol, and south of Velizh.

- 178 -

#

17 Mar. 19^2 CONFIDENTIAL

Northern Army Group ;

The enemy brought up additional forces at the Malukaa penetra-
tion point. We are forming a defensive front. The enemy has thrown in
9 rifle divisions, 2 tank divisions, 2 ski regiments, and 2 ski bat-
talions at this point. Enemy divisions have evidently been withdrawn
between Soltsy and north of Yamno.

2. Finnish and Norwegian Front :
Nothing special to report.

3. North Africa :

Enemy situation unchanged.

The Infantry Division is relieving our Motorized Corps according to
plan.

*♦*»***♦#»#***#♦###*♦♦#*#

♦

- 179 -

CONFIDENTIAL
18 Mar. 19^2

Items of Political Importance

France ;

In Morooco all British citizens 18 to 55 years of age have forcibly "been
evacuated to the interior of the country in order to prevent danger of
sabotage and espionage along the coast.

Great Britain :

According to the discussion in the House of Commons, the supply situa-
tion in the British Isles is becoming more critical. Cuts in coal, gas,
and electricity consumption are under consideration, and men may be
released from the army in order to increase coal production. According
to an official announcement the clothing rations vill be reduced by
25$ beginning on 1 Jun. Rations of white bread and gasoline vill also
be cut.

According to a report from Afghanistan, the quarrels between the Indian
leaders are so serious that the Indian freedom movement can hardly be
consolidated. The only consequence of the present confusion will be
that the Indian divisions will no longer wish to fight for England. If
the German spring offensive crosses the Caucasus, opposition in Iran
will collapse like a house built of cards.

Australia :

General MacArthur, the defender of Bataan, has taken over the high com-
mand in Australia. This transfer, which was ordered by Roosevelt as
early as 22 Feb. was delayed, on MacArthur' s request, in order to facil-
itate transferring his command to his successor. The fact that Mac-
Arthur was transferred does not indicate that the Philippines have been
abandoned.

Sweden ;

Crown Prince Gustav Adolf is going to Finland with a military commission
in order to award Marshal Mannerheim the highest Swedish military decor-
ation. Much attention has been aroused by the special Swedish gestures
on the occasion of Field Marshal List's visit to the Commander in Chief
of the Swedish Army, General Thoernell; also on the other hand by the
significant decision of the highest Swedish court in favor of the
British Government, to release the Norwegian ships.

The two gestures made for the benefit of the Axis powers
hardly compensate for the real advantage accorded the
Allies.

U.S.S.R. :

In a talk on 17 Mar. Litvinov again demanded that the Allies show
greater activity against Germany, since inactive waiting does no good,
and time is a fickle ally which is apt to fight on both sides. For de-
tails see Political Review, No. 65, paragraph 6.

Iran :

Turkish General Staff circles term incprrect reports that the Russians
are already assembling at the Turkish and Iranian frontiers, and that

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18 Mar. 19^2 CONFIDENTIAL

the border has already t&en crossed in a number of places. The Iranian
Telegraphic Agency denies that the Russians delivered an ultimatum, made
territorial demands, or annexed Azerbaijan.

Chile ;

The sinking of the Chilean steamer TOLTEN has aroused great excitement.
The government has asked Washington to investigate the matter further.

Uruguay :

The government confiscated the German steamer TAKOMA in retaliation for
the sinking of the steamer MONTEVIDEO.

Conference on the Situation with the Chief, Naval Staff

I. The Chief, Operations Branch, Naval Staff Operations Division re-
ports that the Italians have agreed to the complete repair of the DUN-
KERQUE. The German Armistice Commission has refused the Italian request
that in return for this concession Italy be allowed to establish obser-
vation posts on the coasts of Tunisia and German officers participate

in the control commissions.

II. The Chief, Operations Branch, Naval Staff Operations Division re-
ports on the question whether the Fleet Command should take part in
planning mining operations. The Chief, Naval Staff shares the opinion
of the Naval Staff that it is advisable for the Fleet Command to par-
ticipate, especially when areas are concerned in which fleet forces
will operate in the future. For copies of the telegram between the
Naval Staff and Group North which brought about this decision of the
Chief, Naval Staff see l/Skl 568O, 5703, and 5975/^2 Gkdos. in War
Diary, Part C, Vol. VI.

III. Group North has postponed the transfer of the HIPPER to Trondheim
until 19 Mar. because of fog. In accordance with the operational or-
ders of Group North, 2 vessels of the 3rd Torpedo Boat Flotilla will
leave for Bergen 24 hours before the Hipper in order to be available
there after refuelling. 2 or 3 destroyers and 2 torpedo boats will es-
cort the HIPPER from Heligoland; after entering Skudesnaes Fjord the
torpedo boats are to be sent ahead to Bergen for refuelling and will
subsequently proceed to Trondheim together with the HIPPER or alone.

Situation 18 Mar .

I. War in Foreign Waters

1. Enemy Situation ;

South Atlantic ;

According to a French report the RODNEY, DEVONSHIRE, DORSET-
SHIRE, BELFAST, DRAGON, and 4 destroyers are between Freetown and Cape-
town.

Pacific :

A light U.S. cruiser and a transport entered Antofagasta on

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13 Mar. 19^2 CONFIDENTIAL

16 Mar.

Indi an Ocean :

According to a French report, the REVENGE, ROYAL SOVEREIGN,
RAMILLISS, HERMES, INDOMITABLE, and 14 or 15 cruisers are In the Indian
Ocean, and the AUSTRALIA, ADELAIDE, COLOMBO, ARETHU3A, DAUNTLESS, and
5 destroyers in Australian waters.

2 . Ow n Situa tio n :

Letter 1717 informs the Naval Attache, Tokyo about the report
of the Japanese Liaison Officer in Berlin that the operation via the
northern passage will not he carried out in 19^2.

Radiogram 135*1 Informs the D0GGER3ANK that after completing her mission
she should withdraw to her waiting area, the western border of which
has been moved 20 further east; she is also informed that the Naval
Staff assumes that the submarine warning Issued on 16 Mar. by the Ad-
miral at Simons town for the position 33° 53' S, 17° ^3 ' E may have some
connection with the mission of the DOGGERBANK.

Radiogram 20^1 contains sailing orders for the CHARLOTTE SCHLIEMANN and
informs her that she is to meet an auxiliary cruiser at the end of April
at a point which will be designated later.

Radiogram 0215 informs all ships in foreign waters about the positions
of the returning blockade runners RIO GRANDE and FUSIJAMA.

Resorts on the enemy situation are sent by Radiograms 0653, 1201, and
20^?.

II. _ Situatio n West A rea

1 . Enemy Situat ion :

In the report of the British Admiralty about the engagement
in the Channel on 14 and 15 Mar., it is announced that the destroyer
VORTIGERN was sunk by 2 PT boat torpedoes. The Admiralty supposes
that British naval forces sank 5 German PT boats in the Channel over
the weekend and damaged 2 others.

For the text of the Admiralty report see appendix to Foreign Press
Reports No. 65.

2 . Own Situ a tion :

Atlantic Coast :

Blockade runner 0S0RN0 was taken under close escort at the
Spanish border at 0715 and at 2225 she anchored in the Royan roadstead.
Thus the ship reached her port of destination approximately 3 weeks
behind schedule.

Thus 3,133 tons of rubber, 10 tons of copper, 7 tons of copper wire,
163 tons of tin In sheets, 7 tons of tungsten ore, 50 tons of molybdenum,
63 tons of tin ore, 26 tons of resin, 52 tons of lacquer, 1,199 tons of
coconut oil, etc. have been added to Germany's economy.

- 182 -

18 Mar. 1942 CONFIDENTIAL

i

Channel Coast ;

According to the radio Intercept service, on 17 Mar. a patrol
vessel was ordered to meet an unidentified ship at buoy 52; however It
was Impossible to maintain contact with the ship. 2 hours later a mine
sweeper reported that a steamer evidently sank. An unidentified vessel
reported a shipwreck. In the Hartlepool area there seems to have been
a shipwreck. A patrol vessel was asked about salvage possibilities and
about the number of corpses.

According to the Liaison Officer at Boulogne, the DUNKERQUE entered
dock in Toulon 2 weeks ago. The ship will be ready for operation in 3
months at the earliest.

III. North Sea, Norway, Arctic Ocean

1. North Sea ; .

Enemy Situation :

According to air reconnaissance there was lively convoy ac-
tivity along the east coast of England.

Own Situation ;

No special incidents.

See Telegram 0045 for the report of the Armed Forces Intelligence Center,
Wilhelmshaven about further interrogations of the prisoners captured at
Katwijk.

2. Norway ;

Enemy Situation ;

Planes of the 5th Air Force reconnoitering the convoy route
from the British Isles to Murmansk sighted nothing. The area north of
Jan Mayen was reported free of ice, and an ice barrier was located
southeast of the island.

Own Situation ;

The second part of the Helnes lighthouse minefield I and the
first part of minefield II were laid according to plan by mine ship ULM
on 17 Mar. The Bantos mine operation is to be executed on 19 Mar.

See l/Skl 6432/42 Gkdos. in War Diary, Part C, Vol. II a for the report
from the Admiral, Arctic Coast concerning the barrages laid in Bugoe
Fjord on 28 Jan., in Joey Fjord on 30 Jan., and in Jar Fjord on 29 Jan.
1942.

With regard to the mining of the approaches to the Sogne Fjord, permitted
as one of the alternate projects, the Commanding Admiral, Norway asks
approval of the plan suggested by the Admiral, Norwegian West Coast,
and for permission to declare a danger zone. For copy see l/Skl 6424/42
in War Diary, Part C, Vol. Ha.

In accordance with the order of the Commander in Chief, Navy issued on
27 Feb. about protecting the Trondheim approaches by deep minefields

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-r« 19*2 OCT? HINT IAL

and closing the gap in the minefield in Trondhelmleden with deep mines,
Group North submitted corresponding plans of the Commanding Admiral,'
Norway on 16 Mar. The Naval Staff approves these plans as well as the
request for the necessary mines, and designates the submarine barrages
for Trondheim as the most urgent task. For copy of telegram see l/Skl
I E 6172/42 Gkdos. in War Diary, Part C, Vol. Ha.

Group North agrees to the plan of the Commanding Admiral, Norway for an
alarm minefield of two rows in the Trondhelmleden (see War Diary 17
Mar.). However Group North wishes assurance that the minefield will be
laid only in a real emergency, and can be removed quickly. For copy of
telegram see l/5kl 6403/42 Gkdos. in War Diary, Part C, Vol. Ila.

Nothing to report about the naval and air situation.

Telegram 181 8 instructs the Commanding Admiral, Norway, with copies to
Group North and the Admiral, Arctic Ocean, for security reasons not to
report the daily positions pf submarines in the regular report, but to
send this information separately as "secret" tc the Naval Staff.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

The SCHLESIEN convoy has passed Fehmarn. Because of bad weather the
patrol line in the Skagerrak was withdrawn. In accordance with the
Instructions from Group North concerning prevention of an attempt of
the Norwegian ships in Goeteborg to break through, the Commanding Ad-
miral, Defenses Baltic Sea takes over control of the gap in the
Kristiansand South minefield, and the Commanding Admiral, Defenses North
of the gap in the Hanstholm minefield. As soon as the ice situation
permits, the Commanding Admiral, Defenses Baltic Sea will closely patrol
the Swedish coastal islands waters. The Commander, Naval Air sends out
daily patrol planes at dawn for three hours, and in the afternoon again
for three hours just before dark, between quadrants AN 3949 and 3528
and along the Swedish territorial waters between 57° 30' N and 59° N.
Ships breaking through west of the eastern border of the Skagerrak de-
clared area are to be attacked and forced to enter port. The 5th Air
Force is requested to inspect daily in the late afternoon quadrants AN
4300, 2800, 4200, and the eastern half of 2700.

It is reported that the structural repairs on the bow of the GNEISENAU
will, be completed on 22 Mar. so as to permit her transfer. The Fleet
has given up the idea of repairing her degaussing gear for the transfer.

According to a report from the Fleet, the SCHARNH0RST can enter dock
because of the improved air defense situation, and will probably do so
on 20 Mar. (See Telegram 1801.)

According to a report from the Operations Staff, Armed Forces High
Command, on the day of the Finnish attack on Sursaari island, German
air forces will be ready to keep Lavansaari under control and to pre-
vent any enemy action from there to counter the Finnish attack. (See
Telegram 1920. )

V. Merchant Shipping

Repair Facilities for German Blockade Runners ;

- 184 -

18 Mar. 19^2 CONFIDENTIAL

The plan worked out by the Special Staff for Mercantile and Economic
Warfare, Armed Forces High Command for exchange of goods between Japan
and Western France by means of blockade runners provides for the fullest
utilization of the available shipping space. Nevertheless the shipping
space available is not sufficient to assure shipment of sufficient amounts
of important scarce raw materials. There is little chance of securing
additional shipping space. Therefore it is very important, if not de-
cisive, for the war effort that there be no change in the ships sailing
schedule.

This means that the ships must be made ready to sail in time. With ref-
erence to the above, the Naval Staff Quartermaster Division is instructed
to find out from the Naval Construction Division whether it will be pos-
sible to finish repairs and conversion of the German blockade runners,
and possible repairs on three Italian ships within the intended time.

VI. Submarine Warfare

1. Enemy Situation :

Radio messages between the ILLUSTRIOUS and Greenock were in-
tercepted in the evening. Other British vessels were located in the
Rockall Bank area. A radio station in West Africa issued a submarine
warning for an area 10 miles south of Cape Palmas.

The British Admiralty extended the declared area in*the Bay of Bis-
cay as far as about 12° w. SSS signals were sent by U.S. tanker MOBILE
OIL (9,925 GRT) south of Long Island and U.S. tanker CATATUMBO (3,163 GRT)
8 miles east of Cape Hatteras.

According to a report from the Uruguayan Foreign Minister, steamer
MONTEVIDEO (5,785 GRT) was torpedoed off Haiti while flying the
Uruguayan flag.

2. Enemy Situation ;

Our submarines established contact with a convoy consisting
of 20 to 50 ships escorted by k destroyers proceeding on a 2000 course
120 miles south of Rockall Bank. 2 submarines are operating against
the convoy.

Submarine U "404" reported sinking a 6,000 ton ore steamer on 12 Mar.
and torpedoing tanker SAN DEMETRI0 (8,000 GRT) on 17 Mar. south of
Long Island.

Submarine U "68" reports sinking 4 steamers totalling 20,653 GRT off
the Liberian coast. In the Mediterranean a submarine established con-
tact with a convoy departing from Tobruk, and 3 submarines are operat-
ing against it.

According to a report of the Commander, Submarines, Italy, the loss of
submarine U "133" as a result of running into the minefield is recon-
firmed .

VII. Aerial Warfare

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18 Mar. 1942 CONFIDENTIAL

1. British Isles and Vicinity :

During the night 13 to 19 planes mined the Thames according
to plan. Also reconnaissance activity. For reports see Enemy Situation,
North Sea and Norway.

2. Mediterranean Theater :

237 fighter planes, 84 bombers, 2 fighter bombers, and 15 re-
connaissance planes operated in support of the 5th transport group.
Successful attacks were made on the airfields on Malta. 8 enemy planes
were shot down in dogfights. In the night of 18 Mar.' planes attacked
antiaircraft and searchlight batteries on Malta.

3. Eastern Front :

Very lively air activity was reported on the Eastern Front
on 1? Mar. Operations centered in the south near Kharkov, in the cen-
tral area near Rzhev, and in the north in the area north and south of
Lake Ilmen. •

Successful attacks were made on the harbor installations of Sevastopol,
Novorossisk, Kerch, and Kamish Burun. The 100th Bomber Wing repeatedly
attacked a convoy reported in the southern part of the Black Sea on a
northerly course between 0850 and 1832; the attacks were unsuccessful,
however, because of strong fighter cover and well-placed antiaircraft
fire.

4 . Special Item :

In order to insure a sufficient number of carrier planes if
the GRAF ZEPPELIN is to be completed quickly, using available types,
the Technical Division of the Air Force believes that structural changes
will have to be made on the ship in order to permit using Ju 87 D*s and
BF 109 F's. For copy of the memorandum to the Shipyard Branch of the
Naval Construction Division see l/Skl I L 6173/42 Gkdos. in War Diary,
Part C, Vol. V.

VIII. Mediterranean Warfare

1 . Enemy Situation:

Undoubtedly it was a British submarine which sank the French
steamer SAINT MARCELLE, which was carrying concealed supplies for the
Axis powers. On 17 Mar. submarines were reported sighted off Spalato,
l80 miles east-southeast of Malta, 54 miles west of Lampione, 18 miles
northwest of Pantelleria, and 44 miles north-northeast of Benghazi.

German reconnaissance planes sighted a burning merchant vessel of ap-
proximately 3,000 GRT on the morning of 18 Mar. lying in the area where
a German submarine sank a tanker out of a convoy on 17 Mar. On 18 Mar.
Italian air reconnaissance sighted a submarine 18 miles northwest of
Misurata. German air reconnaissance sighted 2 medium-sized freighters,
one tanker, and 2 large warships of undefined type leaving Tobruk at
about noon. Italian air reconnaissance spotted a medium-sized freighter
and 2 destroyers northwest of Alexandria on southwesterly course. Ac-
cording to the radio intercept service, a Sunderland plane crashed north-
east of Ras Azzaz and a British plane reported a surfaced submarine near

- 186 -

18 Mar. 19^2

CONFIDENTIAL

the same spot.

2. Ovn Situation:

6 vessels of the 3rd PT Boat Flotilla laid mines in the night
of 18 Mar.

3. Situation Italy :

During the night of 17 Mar. enemy planes vere active over
Tripoli but dropped no bombs. The Italians have established that sub-
marine GUGLIELMOTTI was torpedoed east of Sicily by an enemy submarine.

4. Transport of Supplies to North Africa :

The 5th transport group arrived in Tripoli according to
schedule. The cruiser group left on 17 Mar. at 2000 to return to
Taranto. Therefore the empty ships ALEGRI and GUILIANA will return
from Tripoli to Palermo via the western route and not via the eastern
route under cruiser escort as planned. The two steamers left in the
evening of 17 Mar. escorted by 2 destroyers.

Naval barges engaged in coastal shipping operated according to plan
without special incidents.

Steamers ACHAIA and SALONA left Tripoli for Benghazi the evening of
17 Mar. The same day the ACHAIA ran into a German minefield at 23^5
off Taigule and sank after hitting a mine with 2,2^3 tons of German
cargo aboard. A very regrettable as well as unnecessary loss.'

Steamer BROOK left Naples for Benghazi.

5. Area Naval Group South :

Aegean Sea :

Swedish steamer RADMANSOE arrived at Piraeus from Haifa on
17 Mar. carrying food supplies for Greece.

Otherwise nothing to report.

Black Sea :

Enemy Situation :

Air reconnaissance sighted lively steamer traffic to and from
Sevastopol. In the southern Black Sea 1 convoy consisting of 2 tankers
escorted by 1 heavy cruiser and 1 destroyer under fighter cover were
sighted. For reports on unsuccessful attacks by our planes see Aerial
Warfare. 1 uncompleted cruiser, 3 destroyers, 10 submarines, 3 mine-
sweepers, and 12 steamers were located in Tuapse. 3 steamers on 330°
course were observed east-southeast of Feodosiya in the afternoon.

Own Situation :

No change .

IX. Situation East Asia

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18 Mar. 19*12 CONFIDENTIAL

1. Enemy Situation ;

According to the Vichy Telegraphic Service, the U.S. Navy
Department reported as follows:

During the landing on New Guinea 23 Japanese ships were sunk or damaged
by U.S. planes. The Japanese losses during the tattles in the islands
of the South Pacific consisted of 2 heavy cruisers, 1 light cruiser, 5
transports, 1 gunboat, 1 destroyer, and 1 minelayer. 2 destroyers were
probably also sunk. 1 cruiser, 1 destroyer, 5 transports, 1 supply ship,
1 gunboat, and 1 submarine tender were damaged. U.S. losses: submarine
SHARK; the SSALION was damaged off Cavite to such an extent that she
had to be destroyed; the destroyer STEWARD was destroyed near Soerabaja
to prevent her falling into enemy hands.

The Military Attache at Bangkok reported on 16 Mar. renewed Australian
air attacks on Rabaul and on Gasmata in New Britain. One quarter of the
population of Calcutta has already been evacuated, and is being routed
to Delhi via Bombay.

2. Situation Japan :

Domei reports that Japanese submarines had sunk 11 ships
totalling 81,500 GRT by 16 Mar. Almost all Blenheim bombers have been
shot down in Burma, so that only Spitfire and Curtiss fighters are still
being used.

The Japanese admit that 1 cruiser was lost and 2 damaged during the bat-
tles in the South Sea Islands. They also report that the Allied forces
had no unified command and that both morale and training were inadequate.

Japanese submarines sank a 10,000 ton tanker off San Francisco and a
10,000 ton freighter off the coast of Mexico.

On New Guinea the Japanese are advancing in the direction of Port Moresby
(jungle fighting). Japanese planes attacked Port Darwin and Australian
islands in the Torres Strait. Japanese operations are now concentrating
on the Burma front, and no information is being released.

(

X. Army Situation

1. Russian Front :

Southern Army Group :

On the Kerch Peninsula 4 enemy tank brigades and 3 independent
tank battalions totalling 462 tanks were established; of these 256 were
annihilated between 27 Feb. and 16 Mar.

All enemy attacks were repulsed at the penetration point east of Kharkov.

Central Army Group :

At Dyankovka north of Bryansk a partisan assembly center was
discovered. The partisans proceed from there via Kirov to the enemy
front.

Northwest of Yukhnov the enemy temporarily penetrated our lines. South-
east of Vyazma we are continuing to surround the enemy forces. Enemy

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18 Mar. 19^2 CONFIDENTIAL

supplies are being brought up by air. Fighting is in progress near
Rzhev and Byeloi as well as south of Velizh. North of Surash enemy
scouting troops recruited reinforcements behind our lines.

Northern Army Group :

In the Demyansk area there were lively enemy attacks, mostly
unsuccessful. The enemy is digging in at the Staraya Russa front. The
German attacks north of Lake Ilmen were unable to gain terrain. The
enemy is trying tenaciously to keep from being encircled, using bomber
planes. Enemy attacks near Maluksa continued.

2. Finnish and Norwegian Front :

German and Finnish troops repulsed continuous enemy attacks
made across the ice of the river and lake with motor sleds in the Ladoga-
Svir triangle.

3. North Africa :

Normal scouting activity on both sides.

*************************

- 189 -

COBFIDBBTIAL

19 Mar. 19*2

Items of Political Importance

great Britain ;

Beaverbrook will continue In the U.S. to strive to combine all Allied
resources and carry out special assignments of the War Cabinet. In
these tasks he will hold the position of a representative of the War
Cabinet.

The Deputy Prime Minister informed the House of Commons that a report
on the Channel breakthrough by the German battleships is now available.
The investigations of the committee appointed by the House of Commons
disclosed no serious shortcomings in the defense preparations and in
the cooperation of the various branches of the armed forces. This
statement was criticized to some extent in view of the unsuccessful
defense put up by our forces.

Halifax announced that during the past months no less than 5o£ of all
war production has been sent abroad. Likewise as many soldiers as
could be transported with the ships available have been shipped. Tank
production in Britain is twioe what it was in August 19*1 and 5 times
what it was in August 19*0. By the end of the current year light tank
production will be 7 times as high as at the end of 19*0. These figures
should prove to the U.S. the extent of Britain's total war effort. The
Middle East will play an important role in the coming summer. The num-
ber of troops and amount of materiel sent abroad are limited only by the
shipping space available and by the necessity of guarding the British
Isles, the only base against Hitler in Western Europe.

According to a report from a diplomatic source, public opinion in Britain
has become much less optimistic. Definite doubts concerning the strength
of the Empire are being voiced as the result of the Japanese victories.
Although there is great faith in U.S. aid, there exists great suspicion
concerning the reliability of the Russian ally.

Informed circles in England term the Indian situation as extremely ser-
ious. It is feared especially that British defeats will have grave
repercussions as regards the Indian troops.

Turkey :

President Inonu stated in an address that Turkey intends to abide by all
agreements entered into with other powers. Turkey Is determined to
stay out of the war. To do this, she must be ready to defend herself
at all times.

U.S.A. :

Secretary of the Navy Knox announced that the patrol forces along the
U.S. East Coast will be reinforced considerably during the next two
months. He stated that only 5 out of the 1,000 ships leaving Hew York
for the south were sunk en route. The government vill make use of the
right to confiscate ships necessary to maintain the necessary patrols.

Japan ;

In a statement of policy the Japanese administration of Malaya declared
that its main aim is to produce necessary war materials. lo attempt
will be made to bring in Japanese settlers. In view of the great racial

- 190 -

19 Mar. 19*2 CONFIDENTIAL

mixture of the population, Malaya cannot be granted self government.

According to foreign press reports the Japanese government is planning
to make a final peace offer to Chungking. For the terms of this offer
see Political Review No. 66, paragraph 7b.

Conference on the Situation with the Chief, Naval Staff

The Chief, Naval Staff Quartermaster Division reports on a conference
vith the Chief, War Economy and Armaments Division, Armed Forces High
Command. The naval copper quota for the second quarter will be in-
creased from 1,600 to 2,300 tons, instead of- 2,650 tons. This amount
includes the copper needed to repair the GNEISENAU. Another increase
will be requested in order to be able to continue construction of the
GRAF ZEPPELIN.

The fog installations and night fighter organization at Kiel have been
ready for operations since 14 Mar.

The Fleet believes that it will be necessary to leave approximately
500 men aboard the GNEISENAU while she is undergoing repairs; 240
of these will be needed to man the antiaircraft guns.

The three guns of turret A will be ready for use in coastal batteries
in 2 to 3 months.

Turrets B and C are to be installed complete in suitable terrain (where
no concrete construction will be necessary). Thus only rocky coastal
areas can be considered.

The six- week periods spent by Finnish naval officers aboard various
German vessels are over. They had the desired effect in every respect,
especially as regards the PT boats.

No other reports or decisions were made.

Situation 19 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation :

North Atlantic ;

According to an agent report from Canada, a considerable
troop transport with 14,000 to 16,000 men was to leave Halifax about
the middle of March, presumably headed for the British Isles.

South Atlantic :

According to press reports all Uruguayan merchant ships are
being armed. The ships have been told not to sail.

It has become known that the QUEEN MARY left Sydney on 18 Feb. for
Rio via the Cape of Good Hope, carrying 10,000 men aboard.

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19 Mar. 19*2 CONFIDENTIAL

2. Own Situation ;

Radiogram 15*7 informs the DOGGERBANK that the northern and
southern limits of her waiting area have been shifted 4o further south.

Radiogram 1208 contains information to all blockade runners that the
Naval Attache, Tokyo will take over command between 90© E, 160© V, and
30O s.

Report on the enemy situation was sent via Radiogram 2236.

II. Situation Vest Area

1. Enemy Situation :

The British Admiralty announced that the danger area declared
on 11 Nov. 19*0 has been extended. The new limits of the area are as
follows: In the north a line connecting points *90 52' N, 06o 27' W?
49° 52' N, 070 00' W; 49° 00 • N, 07° 00* WJ 49° 00 • N, 12© 00* W; in
the south a line connecting points 5*° 05' N, 120 00 » W; 5*0 00' N,
080 00' W; from there the line runs at a distance of 20 miles from the
Spanish coast to *3° 39' N, 02O 07 ' W. In the east the line runs from
Bishop Rock west to 48<> 03.4' N, 050 051 w and from there along the
coast of France to Lesocoea Light.

2. Own Situation :

Atlantic Coast :

An investigation of the defense Installations of the submarine
bases along the Atlantic coast, carried on jointly by the local Army
and Navy commands concerned, has shown that at present there is not Suf-
ficient protection against enemy surprise attacks.

In view of the Importance of these bases for submarine warfare, we can-
not afford to have the enemy seise them even temporarily or destroy
them. Above all the bases at Brest, Lorient, St. Nazaire, and La Pal*
lice must be protected in such a way as to make it impossible for the
enemy to seize them by a surprise attack. It Is felt that Bordeaux is"
less endangered.

In view of the withdrawal of troops for transfer to the Eastern Front,
the Naval Staff asks the Army Oeneral Staff to leave sufficient forces
of Army Group D in the Vest Area to ensure adequate protection of the
bases. For copy of the telegram see 1/Skl I Vest 6818/42 Okdos. in
Var Diary, Part C, Vol. lib.

Group Vest reports that after removal of the 1st Squadron of the 40th
Bomber Vlng the Air Commander, Atlantic will have on the average for
reconnaissance work for Group Vest 5 He Ill's and 4 He 115 's until fur-
ther notice, and that with these forces it is no longer possible to pro-
vide adequate reconnaissance for the Group's operations even of a small
area for a few hours before the operations are launched. See Telegram
2100.

The Naval Staff will take up this question with the Air Force Operations
Staff.

- 192 -

19 Mar. 19^2 CONFIDENTIAL

Channel Coast ;

Mine exploding vessel "162" swept 11 mines, some of them close
together, on route "Rosa" In the night of 18 Mar. The vessel was damaged
during this mission. An escorted ore steamer was also damaged. The
mine situation on route "Rosa" in the Os tend -Boulogne area is at the
moment no longer under control.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation :

Very little air activity in the central and northern parts of
the North Sea.

According to air reconnaissance there was normal convoy activity along
the eastern coast of England.

Own Situation:

A submarine was somewhat damaged by ice in the Elbe.

Convoy service as planned without special incident.

The operation to transfer the cruiser HIPPER to Norway was started as
planned. Because a submarine was sighted in quadrant J5l6l Group North
ordered the route shifted farther to the west. Otherwise no special
incidents.

2. Norway :

Enemy Situation :

A submarine was sighted in the afternoon in quadrant AN 3l6l.

Air vjconnaissance sighted a convoy of 6 steamers on southeast course
east of the Rybachi Peninsula, and 2 steamers on east course north of

the Klld in Islands.

Own Situation :

Mine ship ULM laid the Porsanger Fjord minefields on 18 Mar.
as planned. Transports and ship movements according to plan. A Nor-
wegian coastal steamer en route from Flekke Fjord to the west is over-
due.

At the Palace Bridge in Oslo 2 motor boats were destroyed by an explosion.
4 people were killed.

The Commanding Admiral, Norway reports measures planned for laying the
anti-submarine minefields for protecting the approaches to Trondhelms
Leden. Mine ship OSTMARK, mine ship ULM, and mine ship KAISER (this
ship twice) will be used for bringing up the mines from Cuxhaven. The
Commanding Admiral, Norway calculates that all of the anti-submarine
minefields at Trondhelms Leden can be laid by the end of April or the
beginning of May. If another steamer for transporting 600 to 800 mines
in Germany could be provided the project could be speeded up consider-
ably.

- 193 -

19 Mar. 1942 CONFIDENTIAL

In reporting on the defenses of Trondheim Fjord the Commanding Admiral,
Norway states that the effectiveness of the defenses would be consider-
ably heightened if submarines could be forced under water in approaching
Trondheims Leden by having planes and subchaser constantly on the look-
out; he considers that it is necessary and practicable to keep a sub-
chaser flotilla under the Admiral, North Norwegian Coast for Trondheim,
and to have the Air Force carry out constant submarine chase at the 3
approaches to Trondheims Leden in the vicinity of the minefields. A
second coastal listening station is being set up between Agdenes and
Breittingnes. 4 depth charge mortars are being installed on the shore
south of there.

It is still being investigated whether it is possible to close the gap
in the anti-submarine minefield in Trondheims Leden at Garten.

Extensive experience up to now indicates that it is not possible to
close Trondheims Leden by a submarine net. For copy of telegram see
1/Skl 6497/42 Gkdos. in War Diary, Part C, Vol. Ha.

The Commanding Admiral, Norway requests a naval barge for the Admiral,
North Norwegian Coast in order to cope with the transports for the net
operations. See Telegram 1120.

Group North requests, in view of the numerous mining tasks in Norway,
the eastern campaign which will start soon, and the strengthening of
the Westvall which still has to be done, that all mine ships be used as
mine carriers; it requests therefore that mine ship ROLAND be left
with Group North. (See Telegram 1246.)

Group North Instructs the Commanding Admiral, Norway concerning mine
transports, and requests the Commanding Admiral, Norway to Investigate
what further measures might be undertaken for the protection of Trond-
heim. For copy see l/Skl 6483/42 Gkdos. in War Diary, Fart C, Vol. Ila.

Group North agrees to the suggestion of the Commanding Admiral, Norway
concerning mining of the approach to Sogne Fjord. The Commanding Ad-
miral, Norway is asked to investigate whether Stroem Fjord is suitable
for sending through German ships of all sizes by day and night. (See
Telegram 1208.)

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

The ice situation has become worse. The SCHLESIEN convoy was about 10
miles off the Boek lightship in the evening.

The minefield gap at Kristiansand South is being checked once more.
The 3rd transport group, with 4 steamers, will leave Hamburg for
Kristiansand on 20 Mar.

Since capture of the Islands in the Gulf of Finland is to be undertaken
across the ice, it will not be necessary to use the Siebel ferry group,
which will have important tasks with the Army after the gear has been
repaired. For information to this effect sent to the Army General Staff
see Telegram 1245.

V. Submarine Warfare

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19 Mar. 19^2 CONFIDENTIAL

1. Enemy Situation ;

According to the radio Intercept service the convoy SC 75
probably left on 18 Mar. as planned. Reports were Intercepted from the
American coast according to which the U.S. steamer IPSWICH, the steamer
CHESTER SUN, and the tanker GULF OF MEXICO sighted submarines near Cape
Hatteras. The last-named ship vas shot at, and the U.S. steamer LIBER-
ATOR (7,720 GRT) was torpedoed In the same area.

The British passenger steamer CITY OF EXETER (9*95^ GRT) sighted a sub-
marine off the coast of Liberia.

2. Own Situation :

No further reports have come In from the submarines operating
against the convoy south of Rockall Bank.

Group North's Instructions concerning use of the submarines In the
Arctic Ocean are as follows:

For the present the Admiral, Arctic Ocean Is to keep 10 submarines for
operations east of 200 e. The main tasks are to combat supply shipments
for the Russian front and for any enemy landings which might be at-
tempted. The 10 submarines allocated to Narvik, Trondheim, and Bergen
remain directly under the Group. Main tasks: to stand by in the har-
bors in case of enemy action against the Norwegian coast; to take up
patrol lines for protection and reconnaissance during operations by sur-
face forces; and to patrol constantly the probable convoy route in the
Arctic Ocean. For copy of the corresponding telegram see l/Skl 6519/^2
Okdos. in War Diary, Part C, Vol. Ila.

In the Mediterranean German submarines gained contact temporarily with
a convoy on southwest course north of Solium Bay, and with a convoy on
northeast course north of Marsa Matruh.

For supplementary situation report see War Diary, Part B, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity :

Group 106 sank a steamer of 6,000 GRT out of a convoy south-
west of Portland. 2 steamers of 3,000 GRT each were badly damaged, so
that they probably sank.

2. Mediterranean Area :

Intensified attacks were continued against anti-aircraft po-
sitions and airfields on Malta with good effect. According to the
listening service of the Air Force, we have evidently succeeded in pre-
venting the planes sent from Gibraltar from landing.

3. Eastern Front :

See daily situation report for information from the Air
Force Operations Staff about the remaining strength of the Russian Air
Force .

An aerial torpedo hit was scored on a 7,000 GRT tanker proceeding In

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19 Mar. 19*2 CONFIDENTIAL

convoy south of Sevastopol In the Black Sea on 17 Mar.

In order to assure closer cooperation vlth naval commands, the Air Force
Operations Staff ordered the command staff of the Commander, Air trans-
ferred to Trondhelm.

In order to reinforce the air forces in northern Norway, it is planned
to transfer Coastal Air Group 506 to the Commander, Air, Lofoten. The
5th Air Force is also to prepare the transfer of another torpedo plane
squadron from Stavanger to Trondheim. 2 more additional torpedo
plane squadrons are to he brought up.

VII. Warfare in the Mediterranean

1. Enemy Situation :

Ho special reports have been received.

For contact established by German submarines vith the convoy vhlch left
Tobruk on 18 Mar. see Submarine Warfare.

2. Own Situation :

The 3rd PT Boat Flotilla carried out the mine operation accord-
ing to plan during the night of 18 Mar., and left the evening of 19 Mar.
vlth 6 vessels on another assignment.

3. Situation Italy :

Cruiser AOSTA and 2 destroyers entered Taranto the evening
of 18 Mar. after completing their escort mission. During the day and
night of 18 Mar. subchase was carried out in the Gulf of Taranto, off
Naples, along the coastal routes of Sicily and Calabria, in the southern
part of the Adriatic, and off the Dalmatian coast.

The Italian submarine TRICHECO was torpedoed while returning to Brindisl,
evidently by an enemy submarine. During the night of 18 Mar. enemy
planes attacked Benghazi without inflicting damage.

4. Transport of Supplies to North Africa :

Steamer GREGORI arrived in Tripoli in the morning. Steamer
BOSFORO is expected to arrive in Benghazi on 21 Mar. Motor ship M0NREA1E
and the BLXIO, each escorted by 2 destroyers, left Tripoli for Naples
the evening of 18 Mar.

2 enemy planes strafed 2 naval barges returning from Derna to Benghazi
on 17 Mar. Otherwise coastal traffic proceeded according to plan.

According to the German Naval Command, Italy, the Italian Navy has ap-
proved use of Spanish vessels in North African coastal traffic. See
Telegram 19*10 for suggestion to the Naval Staff Quartermaster Division,
Shipping and Transport Branch that additional Spanish vessels be pur-
chased as soon as possible for this purpose.

5. Area Naval Group South :
Nothing to report.

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19 Mar. 19^2 CONFIDENTIAL

VIII. Situation East Aala

According to press reports, the Japanese have captured Basseln vest of
Rangoon. Japanese troops reached Padang on 18 Mar.

IX. Army Situation

1. Russian Front :

Southern Army Group ;

At 0500 the enemy launched attacks on the Feodosiya front
supported by 50 tanks after a very heavy preparatory artillery barrage.
The attacks were repulsed by counterattacks and the use of artillery
and dive bombers.

At the Von Kleist Army Group German forces made a successful advance
vest of Slavyansk. Enemy attacks vlth strong forces and tanks betveen
Kuibyshev and the Ternova valley and vest of Losovaya vere repulsed by
evening.

In the 6th Army sector the enemy made another attack on the front east
of Kharkov. Fighting is still in progress at Sal to. At all other
points the attacks vere repulsed.

Central Army Group ;

A German advanced frontal sector near Sukhinlchi is to be
vithdravn to the Zhizdra position. A number of enemy tanks succeeded
In breaking through north of Yukhnov. The situation is unsettled. Re-
newed enemy attacks vere launched near Gzhatak, and our lines vere
pushed back slightly. Further attacks are expected in this area. Also
at Mostovaya several enemy tanks penetrated our positions. All other
enemy attacks at the front of the Central Army Group vere unsuccessful.

Northern Army Group :

Our troops launched a successful advance south of Kholm. In
spite of stubborn resistance, our pincers, advancing from the south and
the north, succeeded In establishing contact north of Lake Ilmen. At-
tacks from the east on this junction vere thrown back vith heavy enemy
losses. The enemy Is trying to break out of this nev pocket in all di-
rections. North of Maluksa an enemy forest camp vas taken in a German
advance. Kolgompya Peninsula vas shelled from Selskarl.

2. Finnish and Norveglan Front :
Situation unchanged.

5. Horth Africa ;

Normal scouting activity.

*«***•**•*••*«****•******

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COHFIDEHTIAL

20 Mar. 19*2

Items of Political Importance

Great Britain ;

A comprehensive plan for rationing coal, gas, and electricity is being
prepared, since coal production is inadequate and consumption has risen
enormously.

The appointment of Casey, vho vas up to nov the Australian Minister in
Washington, as Lyttle ton's successor in the office of minister for the
Far East, undertaken without previously consulting the Australian Cab-
inet, has evidently created considerable dissatisfaction manifested by
critical remarks in Australia.

Italy.:

According to the Foreign Ministry, an agreement has been reached vith
Great Britain about the return of Italian citizens from Southeast Africa.
4 Italian steamers are to be sent for this purpose via the Atlantic
around the Cape to Jibuti in the beginning of April.

Rumania ;

Foreign Minister Antonescu sharply attacked Hungary In his speech of
19 Mar. For details see Political Review Ho. 67, Paragraph 6.

U.S.A. ;

According to British press reports, dissatisfaction is growing fast in
the U.S. as a result of the defeats in the Pacific Former isolationist
ideas are being revived. The Hearst press asserts that the Americans
will have to attend to their own Interests and can no longer afford to
bother about those of the British. Warnings continue against the danger
from communism. Attacks are being made on Cripps, in line with the
general attempt to find a scapegoat for the defeats.

Brazil ;

According to a report from a diplomatic source, it is Impossible for
Brazil to stay out of the var if Brazilian ships continue to be sunk.
In that event Argentina will confine herself to declaring Brazil non-
belligerent.

Conference on the Situation with the Chief, Baval Staff
lo special reports or decisions vere nade.

Special Items

I. The Japanese Liaison Officer at the laval Staff vas giving the
following information on 14 Mar. after his repeated requests;

1. The German Kaval Staff considers that a German attack on the

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20 Mar. 1942 CONFIDENTIAL

Near East (Suez, Iran, Irak) might have decisive Importance for the out-
come of the war. The German Armed Forces High Command has been Informed
of this opinion, and shares It.

2. Whether, when, and where Germany will launch such ah attack
depends on the development of the situation In Russia, which Is not en-
tirely clear at the present time. The Naval Staff Is not Informed about
any plans of the Armed Forces High Command In this respect.

3. Thus it is true that the opinions of Japan and Germany about
the further course of the war coincide.

4. The Japanese Liaison Officer was told explicitly that this
information should be regarded as only semi-official, and that Japan
can be informed officially only when Germany feels capable of translat-
ing these plans into action.

Another question by the Japanese Liaison Officer concerning the stand
taken by the Army High Command in this question was answered by pointing
out that the matter has not yet reached the stage of definite discussions
between the Army and the Navy.

II. Regarding the decision of the Commander in Chief, Navy that cruisers
NUERNBERG and KOELN should be made ready for operations, the Naval Staff
Quartermaster Division points out that reinstallation of the plane fa-
cilities and the missing torpedo tubes are to be dispensed with. On the
other hand, anti-aircraft armament Is to be reinforced as much as pos-
sible. A radar set is to be installed on the NUERNBERG. No other addi-
tional equipment should be Installed at the expense of fuel space.

III. A report from the German Legation at Lisbon stemming from the
British Embassy there contains information concerning the noteworthy
work being done by the British Intelligence Service to incite revolu-
tions in the Iberian republics which could be used as an excuse and pos-
sibility for Allied landings for the purpose of establishing a continental
western front in the Pyrenees. Supply shipments to North Africa would

be endangered by control of the western Mediterranean thus established;
this combined with simultaneous pressure exerted on France would lay a
foundation for the 194} offensive. For copy of the report see l/Skl
6501/42 Gkdos. in War Diary, Part C, Vol. lib.

The Naval Staff believes that thio report la probably cor-
rect, and that such procedure must be expected in view
of its strategic effects and since it Is altogether pos-
sible that it would be successful if sufficient forces
are used. However, the Allies will probably not attempt
such an operation as long as we are able to keep down
Allied tonnage as the result of the Battle of the Atlan-
tic and operations in the Pacific and Indian Oceans.

Situation 20 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation t

For enemy radio reports intercepted and deciphered up to
15 Mar. see radio intelligence report no. 11/42 issued by the Naval

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20 Mar. 1942 CONFIDENTIAL

Staff Communications Division, Radio Intelligence Branch.
Worth Atlantic :

According to an agent report of 2 Mar., the following U.S.
ships were In northern Ireland at the end of Februarys cruisers CHICAGO,
LOUISVILLE, SAVANNAH, CONCORD, RICHMOND; destroyers PERKINS, MANLEY,
WORDEN, CASTOR, PORTER; 1 auxiliary cruiser, 1 escort vessel. The de-
stroyers SOMERS and GLEAVES were on patrol near Iceland.

t

South Atlantic ;

Freetown relayed a QQ^signal on 20 Mar. from 20 N, 20© W; it
was cancelled later.

Indian Ocean :

A convoy with about 10,000 troops left Durban for Egypt on
7 Mar. A submarine warning from a steamer west of Colombo was inter-
cepted.

2. Own Situation ;

Radiogram 1926 Instructs the REQENSBURG to withdraw to the
south after supplying ship "10".

Radiogram 1107 informs ship "10" that the 0S0RN0 entered the Gironde
and contains instructions for the DOGGERBANK.

Radiograms 1235, 1200, 1755, and 1924 Inform all ships In foreign waters
about the arrival of the 0S0RN0 and about the positions of the Swedish
ships In the American traffic as permitted.

II. Situation Vest Area

1. Enemy Situation :

A report concerning location of a German PT boat was inter-
cepted from the vicinity of Dungeness.

In the morning a Sunderland flying boat attacked a German customs patrol
boat north of Biarritz, landed on the water next to her, and took off
again, evidently taking along 3 customs officials and 2 Frenchmen, who
are missing.

Reconnaissance planes sighted a transport of approximately 10,000 GRT
entering Plymouth in the morning, escorted by 6 PT boats and 2 patrol
boats. A convoy consisting of 20 to 25 steamers was sighted on north-
easterly course off Land's End.

According to an intelligence report from France of 20 Mar. (from a
French major), the Anglo-American forces (Navy, Army, Air Force) are
planning to attack simultaneously the French coast between St. Malo
and St. Michel and between St. Nazaire and Vannes in the first week in
April, and are hoping to establish contact between these two beachheads
at Rennes. If the operation is successful, a similar operation is to
be carried out from Cherbourg, thus establishing a western front approx-
imately 200 km. long. Preparations for sabotage, etc. are being made
by the De Gaullists. Brest will be the main port of disembarkation for

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20 Mar. 1942 CONFIDENTIAL

the American troops.

All interested commands have been informed.

2. Own Situation :

Atlantic Coast t

Ship "28" departed according to plan.

Channel Coast :

The 4th PT Boat Flotilla went on a torpedo mission along the
southeast coast.

In order to reinforce the troops in the west area, the Naval Staff
Quartermaster Division has ordered the 1st Naval Signal Battalion to
transfer from Rue gen to the west area. Operational command of the bat-
talion is under the Naval High Command, administrative command under
the Commanding Admiral, France. The battalion must at all times be
ready for operation "Isabella". It is also planned to transfer the 3rd
Naval Signal Battalion to the west area (the Netherlands).

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation :

An especially trustworthy agent in the enemy intelligence ser-
vice was notified by the enemy on 20 Mar. that beginning 20 Mar. a
large-scale British attack may be expected in the area of Antwerp, to be
announced by Radio London by means of code word "Les Becassines
Travaillent . The code word will also set off acts of sabotage. For
details see Telegram 1820.

The fact that there are repeated reports of Imminent
enemy landing operations in western and northern Europe,
which seem most unlikely in view of the strained trans-
port situation, seems to Indicate that by purposely dis-
seminating such rumors the enemy hopes at least to create
unrest and trouble on the German side, even though enemy
forces are not sufficient to carry out these tempting
plans .

See Telegram 0430 about additional information obtained by the Intelli-
gence Center, Vilhelmshaven from the prisoners captured at Katwijk. It
is noteworthy that motor gun boats type 340 are equipped with so-called
"silent motors".

According to air reconnaissance there was lively mine sweeping activity
on 20 Mar. between Cromer and Orfordness. At Flamborough Head a south-
bound convoy was sighted, consisting of 40 steamers, escorted at some
distance by one small cruiser.

Own Situation :

The 3rd transport group, consisting of 4 steamers, left Ham-
burg carrying 3#735 men, 908 horses, and 506 vehicles.

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20 Mar. 1942 CONFIDENTIAL

The transfer of the HIPPER is proceeding according to plan. At 2000 she
was in quadrant AF 8871 (Sognes joen) .

Minesweeping and escort service in the area of the Commanding Admiral,
Defenses, North proceeded according to plan without special incident.

Increased mine activity of the enemy in the Channel seems to indicate,
in view of results achieved, .that he has extended his mining operations
to the areas of the Commanding Admirals, North and Baltic Sea. Until
improved minesweeping gear has been provided, we must count on losing
an increased number of mine detonating vessels and remote sweeping gear.
Oroup North therefore requests that mine detonating vessels and remote
sweeping gear be provided at the latest by the end of the ice period,
and that the Air Force be asked to continue developing minesweeping
planes. (See Telegram 2114.)

2. Norway ;

Enemy Situation ;

Air reconnaissance located 7 steamers in the harbor of Murmansk
totalling about 15,000 GRT, and 2 icebreakers with 2 steamers near
Lavna. On 19 Mar. a Russian PT boat was in Litsa Bay, and another in
Motovski Bay. Air activity from the entrance to Petsamo Bay to the
vicinity of Llinahmari. Aerial mines were probably dropped. On 20 Mar.
air activity in the area of Trondheim was observed at noon.

According to statements of the only survivors of the Russian steamer
IM0RA at the Intelligence Center, Tromsoe, the ship was sunk on her
second voyage. On the first voyage she transported guns and sugar from
the British Isles to Murmansk. There were supposedly 14 ships en route
at the time, which were escorted by 5 torpedo boats during the first
3 days.

Thus it is not impossible that the IM0RA belonged to con-
voy PQ 12 and that the forces of the Commanding Admiral,
Battleships were therefore in the direct vicinity of the
convoy on 7 Mar.

Own Situation ;

The second part of the mining operation at Helnes lighthouse,
barrage II, was carried out as planned by the ULM. The northern mine
ship group laid the "Bantos A" minefield as planned, with the BRUMMER,
the COBRA, 4 escort vessels, and 4 PT boats.

After making port submarine U "377" confirms the report that a flight
of Ju 87 f s attacked her on 6 Mar. near Moskenstraumen, fortunately with-
out success. The boat is undamaged.

Copies of the Commanding Admiral, Norway 1 s opinion on the directive of
Group North concerning bringing up the mines and net barrages to Trond-
heims Leden (see War Diary 19 Mar.) are sent to the Naval Staff, the
Fleet, the Commanding Admiral, Battleships, and the Admiral, North
Norwegian Coast. See l/Skl 6550/42 Gkdos. in War Diary, Part C, Vol.
Ila.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea
Naval and ice situation unchanged.

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20 Mar. 19^2 CONFIDENTIAL

The orders of Group North concerning measures to prevent Norwegian stea-
lers from leaving Goeteborg stipulate that 2 vessels of the 3rd Torpedo
Boat Flotilla (beginning 21 Mar. 3 vessels), and 6 vessels of the 6th
FT Beat Flotilla are to observe 3 hour readiness In Stavanger until the
Ice situation permits transferring them to Kristiansand South and to
the Kattegat. Group North will be in command.

For copy of instructions see l/Skl 6599/^2 Gkdos. in War Diary, Part C,
Vol. III.

V. Merchant Shipping

According to press, reports, the chairman of the U.S. War Production
Beard will suggest to the President that the shipbuilding program an-
nounced in January 1Q42 be further increased from 8,000,000 to 9,000,000
tens in 19^2, and from 10,000,000 to 15,000,000 tons in 19^3. The Naval
Staff Intelligence Division is at present investigating whether these
figures are correct and particularly whether this program can be carried
cut .

U.S. and British offices handling wartime shipping have announced that
a joint agency with headquarters in New York has been created to control
cargo and import duties.

See Brief Report No. 9/^2 "Foreign Merchant Shipping" issued by the
Naval Staff Intelligence Division, Foreign Merchant Shipping Branch for
figures on shipping traffic between South America and the U.S., and
about French ships in tndo China, among other things.

VI. Submarine Warfare

1. E nemy Situation :

The 19th Group carried out lively air reconnaissance activity
in the rendezvous area.

The radio intercept service reflected lively German submarine activity
from the American East Coast. Steamers and tankers reported submarines
off the Chesapeake Bay, Cape Hatteras, Sable Island, and Cape Lookout.

According to these reports steamer MONICA and tanker DAVILA (8,053 GRT)
were torpedoed. Tanker ARGON (6,952 GRT) was pursued, and U.S. tanker
MERCURY SUN was fired upon. The latter had already been reported tor-
pedoed and blown up on 13 Mar.

All merchant ships in the Atlantic were given exact sailing orders for
the area east of Diamond Shoals, so that there is probably a minefield
. there .

All warships in West Indian waters were notified that a periscope was
sighted about 480 miles northeast of Cayenne. This may have been an
Italian submarine.

See Telegram 1000 for a detailed report from the Naval Attache at Buenos
Aires about press reports concerning the torpedoing of the Uruguayan
steamer MONTEVIDEO and the treatment of the crew of the German steamer
TACERNA.

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20 Mar. 1942 COKFIDERTIAL

2. Ovn Situation :

Contact vas not reestablished with the convoy in the vicinity
of Rockall Bank. One submarine reported that of 6 torpedoes fired, 4
probably hit the target.

In the Mediterranean a German plane observed a German submarine attack-
ing an escort force and scoring a hit on a destroyer of the JERVTS
class. The submarine herself reported a 6 hour pursuit by depth bombs,
during vhlch 79 explosions vere heard, but no damage vas done.

For supplementary situation report see War Diary, Part B, Vol. IV.

VII. Aerial Warfare

1. British Isles and Vicinity :

In the late evening Group 106 sank one 4,000 GRT steamer and
damaged another one of 3,000 to 4,000 GRT belonging to the convoy near
Land's End (see Enemy Situation, West Area). Falmouth vas attacked as
alternate target.

2. Mediterranean Theater ;
Attacks on Malta are continuing.

3. Eastern Front :

On 18 and 19 Mar. large numbers of our planes attacked tank
concentrations, columns, and trains vith good results on all Army fronts.

Air Commander, South reported that during an attack on Sevastopol one
steamer of 7,000 GRT and one passenger vessel of 10,000 GRT vere set
afire.

For results of photo reconnaissance in the harbors of the Black Sea,
see Enemy Situation, Black Sea.

VTII. Warfare in the Mediterranean

1. Enemy Situation :

At 1200 on 19 Mar. the Algerian subcommission of the Italian
Armistice Commission reported to the Italian Raval Staff that a plane
sighted 5 var ships, one of them a large one, on easterly course betveen
Melilla and Oran. According to another report by the Italian Havy, at
0300 on 20 Mar. the MALAYA, ARGUS, EAGLE, and RERMI0HE left Gibraltar,
evidently eastbound. An Italian submarine sighted this force vith
several destroyers at 0533 forty miles east- southeast of Cape de Gata
on a 4oo course, speed 22 knots.

lo change in the ships in the harbor of Valletta in the morning as
compared to 19 Mar.

Reconnaissance planes and 1 submarine reported a slight increase in
convoy traffic in the Alexandria-Tobruk area.

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20 Mar. 1942 CONFIDENTIAL

3 merchant ships and 4 destroyers were north of Sidi Barrani at 0850 on
westerly course. Evidently the same force was located by the radio in-
tercept service north of Solium Bay, and was attacked by planes at 1420
approximately 50 miles north- northwest of Sidi Barrani.

2. Own Situation :

The 3rd PT Boat Flotilla did not carry out its mining opera-
tion be-ause of high swells and heavy seas (6), but was forced to drop
the mir s in an inactive condition.

The 6th Motor Mine Sweeper Flotilla left La Spezia on 18 Mar. for trans-
fer to North Africa.

3. Situation Italy ;

In view of the enemy forces reported sighted on 19 Mar. in the
area of Melilla and Oran, all PT boats in Trapani and Pantelleria have
been alerted, reconnaissance has been ordered south of 39° N as far as
4o w, and the torpedo planes on Sardinia have been ordered to be in
readiness.

On 19 Mar. one auxiliary minesweeper was sunk by enemy submarine gun-
fire off Brindisi.

4. Transport of Supplies to North Africa ;
No special incidents.

The 6th transport group will consist of 6 motor ships.

5. Area Naval Group South ;

Aegean Sea ;

Auxiliary cruiser BARLETTA was sent to Italy for shipyard
repairs .

Subchase and escort service proceeded without special incidents. See
Telegram 1616 for approval of the Naval Staff Submarine Division of
plans to use submarine traps.

Black Sea ;

Enemy Situation :

According to photo reconnaissance on 19 Mar. there were: 1
light cruiser, 1 torpedo boat, 1 tanker, and 19 steamers in Sevastopol ;

1 battleship, 2 destroyers, 1 torpedo boat, 1 tanker, 17 steamers, and

2 floating docks in Novorosslsk ; 1 tanker, 7 steamers, and 3 motor
mine sweepers in Kerch ; 12 small steamers in Tamenskaya ; 10 steamers
and 4 motor minesweepers in Kamlsh Burun .

According to the radio intercept service on 19 Mar: cruiser A and de-
stroyers entered a base on the southwest or west coast of the Crimea;
cruiser E was at sea west-southwest of Sevastopol; cruisers D and F
were at sea at an unknown position; there were 3 destroyers and 3 sub-
marines west of the Crimea, and 3 destroyers and 1 submarine east of
the Crimea.

According to air reconnaissance on 20 Mar., concentrations of small
vessels were sighted near Kerch.

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20 Mar. 1942 CONFIDENTIAL

Ovn Situation :

Nothing special to report about the naval situation.

Special Item :

In following up the questions raised by the memorandum of
Group South concerning naval tasks in the Black Sea beginning Spring
19*12, as well as by the directive of the Naval Staff concerning opera-
tions in the Black Sea (see War Diary, Part C, Vol. XIV: l/Skl 442/42
and 275/42 Gkdos. Chefs.; the memorandum and the directive came out at
the same time), the Deputy Commander of Group South reported on 5 Mar.
as follows: the basic preparations have been begun; the details for
the supply shipments which the Naval Staff has ordered initiated to
the southern Ukrainian harbors, the harbors on the west coast of the
Crimea, and those on the Sea of Azov, as soon as the ice situation per-
mits, have been discussed with the Admiral, Black Sea and the Naval
Training Division, Rumania.

As regards the protection of this supply traffic, Group South states
that the necessary equipment has been delayed In the course of the winter
through traffic and material difficulties, and that also the PT boats
and motor minesweepers expected from Germany will not be available un-
til the beginning of the supply operations.

Also all equipment needed to support the Army in the conquest of Sevas-
topol and of Kerch, as well as in the continued occupation of the Crimea
will not be available until the middle of April, with the exception of
that needed to prevent Russian landings behind the Army front. Beginning
with the middle of April submarines and PT boats will be available to
attack Russian supply traffic to Sevastopol and the Kerch peninsula.

Group South reports on a number of defensive measures, some of them com-
pleted and others in progress, which have been taken to prevent Russian
landings (use of Army coastal artillery, commitment of Naval Coastal
Artillery Battalion 601, emergency blocking of the harbor entrances by
hawser boom barrages, destruction of landing facilities, etc.).

Other measures to be taken for this purpose include laying harbor bar-
rages by means of river mines, using 10 warrant mine officers as barrage
specialists, bringing up equipment for detecting mines for the harbors
on the Sea of Azov, commissioning 100 motor fishing vessels with
Croatian crews as defense flotillas in the Crimean and Azov area.

Further mining operations are being planned for supplementing the de-
fenses of the Crimean coast and for disrupting Russian traffic to the
Kerch peninsula. In view of the fact that there is little Russian ac-
tivity, these operations can be carried out if the German Air Force
will provide the forces necessary for close and remote escort (this
seems doubtful for the next few weeks according to discussions carried
on so far with the 4th Air Force).

6 mining operations are planned, 5 of which will be carried out by
minelayer MURGESCU escorted by destroyer REGBLE FERDINAND off Eupatoria,
Ak Mechet, Yalta, Feodosiya, and In the southern Kerch Strait. The
6th operation consists in mining the approach point off Cape Kherson,
and is now being prepared.

Group South expects that Rumanian political leaders and the Rumanian
Navy will cause difficulties, since they believe that it is too danger-
our to use Rumanian ships. These difficulties will have to be overcome,
however .

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20 Mar. 1942 CONFIDENTIAL

Unfortunately the 5 mining operations mentioned above and urgently re-
quested by the 11th Army High Command cannot be carried out for the time
being, since according to the report of Group South on 17 Mar., the Com-
mander, Naval Air, Black Sea (4th Air Force) has at the present time
only one airplane which is ready for operations, and the Commander, Air,
South of the 4th Air Force has no planes available for escort and recon-
naissance at sea.

Group South believes, however, that the 6th operation (minefield off
Cape Kherson) can be carried out even with limited air reconnaissance.
The Admiral, Black Sea has therefore been ordered to ask Rumanian po-
litical leaders and the Rumanian Navy to carry out this operation.

IX. Situation East Asia

1. Enemy Situation ;

According to British reports the Japanese did not land on the
Andaman Islands after all. At the moment the British population Is
being evacuated.

According to French reports, since the morning of 19 Mar. a major engage-
ment has developed out of an attack by American-Australian naval forces
on a large convoy in the Coral Sea northeast of Australia. The German
News Agency (DNB) states that Allied planes sank a Japanese cruiser
near Rabaul.

2. Situation Japan t

According to press reports the Japanese have carried out fur-
ther landings on the northeast coast of New Guinea. It Is said that
there are numerous cruisers and several aircraft carriers in the land-
ing fleet.

Reuter reports Japanese air attacks on Port Darwin and Port Moresby.

X. Army Situation

1. Russian Front :

Southern Army Group :

In the morning Korpech was retaken by our troops; in the
afternoon we lost the southern part of the city once more, however. It
was not possible for the Air Force to support the operation due to the
weather .

At the Von Kleist Army Group enemy attacks were repulsed. At the 6th
Army sector a concentric attack by German and Hungarian forces in the
Blshkin area came to a stop against enemy resistance. East of Kharkov
the enemy succeeded in pushing into 2 villages. Other attacks were
repulsed.

Central Army Group :

In the area of the 2nd Panzer Army all enemy attacks were

- 207 -

20 Mar. 19^2 CONFIDENTIAL

repulsed. In the 4th Army sector our attack near Demenskoye was halted
after some success at first. The enemy succeeded in pushing in our front
at several places northeast of Gzhatsk. Our troops took over at the
point of penetration northwest of Rzhev. Attacks by the enemy at other
sectors of the Army Group were unsuccessful.

Northern Army Group ;

The project of the Air Force to wear down the enemy south of
Lake Ilmen was carried out at first in isolated operations. Enemy at-
tacks southwest of Lyubnitsa, west of Yamno, and south of Maluksa were
repulsed. Enemy tank attacks on the front south of Oranienbaum were
also unsuccessful.

2. Finnish and Norwegian Front :

Lively enemy reconnaissance, artillery, an* plane activity at
the Murman front. Several enemy gunboats were driven off at the Eina
Guba point.

3. North Africa :

Normal scouting activity on both aides.

**«*••#**«*•*#•***••*****

- 208 -

CONFIDENTIAL

21 Mar. 19*2

Items of Political Importance

Great Britain :

In an article in the Times Sir William Beveridge states that changes in
the government up to nov are not sufficient to ensure a successful pros-
ecution of the war. The attitude and policy of the British government
must be changed. The state should take over the industries important
to the var; instead of a coalition of the parties a national government
must he created, and a real leader is necessary who instead of making
unfortunate compromises would take the risk of responsibility himself.
This demand shakes the very foundations of the British state!

For details see Political Review No. 68, paragraph 1 c.

Australia ;

British-Australian disagreement has led to the issuance of an Australian
white book on the events leading up to Casey's appointment to the post
of British minister in Cairo. In any event Churchill was very much mis-
taken if he hoped to flatter the Australians by appointing an Australian
as British minister.

Sweden :

The Russian Legation protested to the Foreign Office because the Swedish
decoration was awarded to Field Marshal Mannerhelm.

U.S.S.R. :

The Russian Japanese fishing agreement was extended for another year at
Kuibyshev. For the contents of the agreement see Political Review No.
68, paragraph 4.

Hungary :

The sharp statements of the Rumanian Foreign Minister Antonescu against
Hungary have had very lively repercussions in that country.

Turkey :

According to a report from the Embassy, Turkish government circles
particularly appreciate the success of the German defensives on the
Crimea, since Stalin's plan to roll up the southern front starting at
the Crimea is thus foiled.

The police confiscated Russian and British propaganda material in Ankara.

U.S.A. :

The State Department announced that the French have given assurance that
no Axis ship will refuel in French colonies in the western hemisphere.
The U.S. government registered a sharp protest because the German entered
Martinique on 21 Feb., but declared themselves satisfied with the French
explanation.

Argentina:

The government has rejected the U.S. request that Argentine ships join
inter-American convoys.

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21 Mar. 1942 CONFIDENTIAL

Chile ;

As the result of the sinking of steamer TOLTEN, all Chilean ships have
been ordered to observe strictly measures recommended by the Axis for
Identification purposes, and under no circumstances to sail without
lights. The Chilean government vill inform Washington to this effect.

Special Items

A survey of the officers in the Navy made by the Officer Personnel Di-
vision on 4 Feb. is very interesting as regards the ratio of officers
aboard ship to those on land. Of a total of 15,997 officers, of which
5,962 are active, 6,450 on unemployed pay, and 3#585 for special duties,
there are in fleet service only 2,003 active officers, and together with
the other categories 2,972 in all, that is not even a fifth; 2,?46
others, of these 1,245 reserve officers, are in the coastal service at
sea; 4,083 are in the coastal service on land; 1,081 are in replace-
ment units; other commands and offices account for 4,917 . -'

Situation 21 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation ;

No special reports have come in.

2. Own Situation ;

The most recent information concerning enemy traffic in the
South Atlantic makes it nece ssary to change the point planned for the
rendezvous of the TAHHENFELS and the REGENSBURG (see War Diary 17 Mar.,
Radiogram 0642 to ship "10"). The TANTJENFELS is therefore instructed in
Radiogram 1134 to proceed to the Indian Ocean according to sailing orders
and is informed that the Naval Staff intends to have her meet the
REGENSBURG there for delivery of supplies.

Ship "10" is advised accordingly in Radiogram 0616. Radiogram 1407
contains information on the enemy situation.

II. Situation West Area

1. Enemy Situation ;

The Armed Forces High Command transmits an intercepted radio
report sent by enemy agents in Holland about our camouflaged PT boat
base at Ijmuiden, giving location of the torpedo dump and the command
post. (See Telegram 1205.)

Interested commands are being Informed.

2. Own Situation:

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21 Mar. 1942 CONFIDENTIAL

Atlantic Coast ;

The tanker GERMANIA was met at 1350 at the Spanish-French bor-
der. Early morning reconnaissance up to 15° W made for the departing
ship "28" was without result.

Channel Coast :

The 4th PT Boat Flotilla broke off Its mission In the night
of 20 Mar. because of fog.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Battery "Vlneta" fired at ships located off the Dutch coast
between Hook of Holland and Schevenlngen from a distance of 15 kilometers
After 3 salvos it was observed that the ships turned off to. the north.
The Admiral, Netherlands has ordered Increased readiness.

2. Norway :

Enemy Situation :

In the morning air reconnaissance observed 20 steamers (each
of 4,000 to 6,000 0RT), most of them under steam, and 10 1,000 GRT
steamers between Lavna and Kola.

Own Situation :

Transport and escort tasks were executed according to plan
with no special incidents.

The transfer of the cruiser HIPPER to Trondheim was carried out accord-
ing to plan.

A copy of Group North's order that the 3 destroyers with the best engines
and best-trained crews be transferred to the arctic coast under a flo-
tilla commander so as to be at the disposal of the Admiral, Arctic Ocean,
is sent to the Naval Staff. The order also contains directives for the
operations of these destroyers from arctic ports against convoys located
by plane and submarine in the area of the Commanding Admiral, Norway.
See 1/Skl 6696/42 Gkdos. in War Diary, Part C, Vol. Ha.

This is in accordance with the Naval Staff's opinion that
a destroyer flotilla should be transferred to the arctic
area soon.

See Telegram 1824 for Group North's directive that the 4 submarines
stationed east of the Faroe Islands be withdrawn to harbors in western
France and that as long as these 4 submarines are stationed east of the
Faroes, the 6 submarines stationed in Narvik, Trondheim, and Bergen at
the disposal of Group North should operate only against coastal convoys
and enemy naval forces in the northern North Sea when reconnaissance in-
formation is available.

According to the Commanding Admiral, Battleships work to make the stern
of the PRINZ EUGEN watertight will not be completed before 31 Mar. It
will require 2 to 3 weeks to install the jury-rudder as ordered by the

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21 Mar. 1942 CONFIDENTIAL

Naval Staff after it arrives from Germany. If, therefore, the ship awaits
arrival of the jury-rudder from Germany, she cannot be transferred prior
to the end of April. She will have a trial run without jury- rudder and
undergo degaussing tests sometime early in April. (See Telegram 1850. )

Group North suggests that steamers POTSDAM and GNEISENAU carry troops to-
gether under fighter cover only as far as Oslo or Kristiansand South.
The Group does not believe it advisable to proceed to northern Norway.
On the other hand Group North suggests that the troop transports leaving
Hamburg at the present time proceed to northern Norway (see Telegram
1845).

The Commanding Admiral, Norway reports on measures agreed upon between
the Commissioner, Norway and the SS in order to influence Norwegian ship-
owners and captains whose ships are in enemy areas to put their ships at
the disposal of the Axis powers. For copy see l/Skl 11035 geh. in War
Diary, Part C, Vol. XI. For further discussion of the question see War
Diary, Part C, Vol. VIII.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation i

According to an intelligence report of 0955» the Norwegian
ships have left Goeteborg. Details are not known.

2. Own Situation :

Group North reports that all possible measures have been taken
to prevent these ships from breaking through. He recommends, however
that Sweden be reminded that her steamers which are permitted passage
observe exactly the stop signals of German naval and air forces, so that
incidents can be avoided. Our forces have orders to prevent with all
means the steamers from breaking through. The Foreign Office reports
that the departing steamers will be accompanied by Swedish warships in
order to be sure that Swedish territorial waters are not used as a hiding
place and that territorial borders are not crossed.

Telegram 1811 contains information to this effect to Group North, with
copies to the Commanding Admiral, Defenses, Baltic, the 5th Air Force,
and the Commanding Admiral, Defenses, North.

No change in the ice and sea situation.

V. Submarine Warfare

1. Enemy Situation :

According to the report of a very reliable agent, the convoy
previously announced has arrived In Ulster. It is composed of 21
steamers, including 7 transports." The escort included the cruisers
CHICAGO, LOUISVILLE, CONCORD, and RICHMOND. The next transport is ex-
pected between 24 and 30 Mar.

According to radio monitoring an HX convoy will leave the assembly
point at 430 151 h, 600 40 1 W (south of Sable Island) on 21 Mar. An un-
identified ship was torpedoed at midnight about 400 miles south of the
large Newfoundland Bank. The U.S. tanker ATLANTIC SUN (11,615 GRT)
was torpedoed south of Cape Lookout. On the Florida coast U.S. steamer
SAHALE reported being attacked by two torpedoes which missed.

- 212 -

21 Mar. 1Q42 CONFIDENTIAL

According to a report from the Naval Attache at Buenos Aires steamer
MONTEVIDEO sank at 29° 30 » N, 69° 13' W.

The Admiralty has announced the loss of the corvette ARBUTUS.

2. Own Situation ;

Submarine U "161" en route home, fired on the armed steamer
EMPIRE GOLD 1,000 miles southwest of the Azores, but without success,
since her torpedoes had been exhausted.

See Telegram 1103 for the report of the Commander, Submarines, Italy
about the attack by submarine U "652" on the convoy off Solium Bay (see
War Diary of 20 Mar.).

See Telegram 2015 for the report of the Commander, Submarines, Italy
concerning danger to secret material resulting from forced opening of
the safe of submarine U "56l" at Pola. So far there are no specific in-
dications that material was stolen.

Submarine Distribution in the North Area :

1. The "York" group, with U "135", "553", "569", and "701", is at
sea east of the Faroes.

2. The "Wrangel" group, with U "405", "586", and "592" is at sea ap-
proximately in quadrants AF 58 and 82.

3. U "377" and "403" are in Narvik.

4. U "591" is in Bergen.

The distribution of the submarines in the Arctic Ocean reported by Group
North on 18 Mar. (see War Diary 18 Mar.) provides that only the 10 sub-
marines stationed in Kirkenes be placed under the Admiral, Arctic Ocean,
with their operations area extending to 260 E; the two vessels- stationed
in Narvik will remain under Group North and are to operate in the Jan
Mayen area.

The Naval Staff considers this arrangement unsuitable. Since for tacti-
cal reasons the most favorable spot for contacting the PQ convoys in
time lies between Bear Island and North Cape, and there are greater
prospects of success in this strait formed by our coastal waters and the
ice border than near the porta of arrival, it will be necessary to ex-
tend the operations area to the west, especially when an icefree route
north of Bear Island enters the picture; and then in the interest of
unified direction of operations it will be advisable to place also the
vessels in the Jan Mayen area under the Admiral, Arctic Ocean. If the
submarines are used during an operation of the surface forces they
come automatically under the command of Group North once more. The
Naval Staff is further of the opinion that Group North can count on
submarine replacements in the north area in case extended shipyard re-
pairs should be necessary.

A directive to this effect is sent to Group North and the Commanding
Admiral, Submarines, with the approval of the Chief, Naval Staff.

For copy of the telegram see l/Skl I u 622/42 Gkdos. Chefs, in War
Diary, Part C, Vol. IV.

Upon inquiry of the Japanese Liaison Officer at the Naval Staff, whether
German submarines have received special orders as regards Chilean and
Argentine ships, the Naval Staff replied that the order to the submarines

- 213 -

21 Mar. 1942 CONFIDENTIAL

reads as follows: "These ships are to be treated as ships of all other
neutral countries, but particular care should be taken that no incidents
occur involving the above named countries."

VI. Aerial Warfare

1. British Isles and Vicinity;
Nothing special to report.

2. Mediterranean Theater :

The naval force which left Gibraltar for the Mediterranean at
0J00 on 20 Mar. was first sighted by air reconnaissance at 0935 on 21
Mar., and contact was maintained until 1730. Since Italian reconnais-
sance sighted wheeled planes on an easterly course, it may be expected
that planes were ferried to Malta, and according to radio direction
finding, it is assumed that these planes flew over French territory.
German planes were ordered to operate against the convoy located by an
Italian submarine on 21 Mar. at 1630 northwest of Tobruk on northwesterly
course.

The II Air Corps continued to pound the Venias airfield on Malta with
good results with 2 massed attacks. Strong German fighter forces pa-
trolling the Strait of Sicily did not contact the enemy. Reconnaissance
planes of the X Air Corps sighted nothing between 25° and 30°. The
Air Commander, Africa launched nuisance raids against airfields in the
Tobruk area. The Italian Air Force reported sinking an enemy warship
40 miles north of Bardia on 20 Mar.

3. Eastern Front:

Lively air activity on all Army fronts on 20 Mar. Correction
of the report of successes during the German air raid on Sevastopol on
20 Mar.: 1 4,000 GRT steamer sunk, 1 7,000 GRT tanker probably sunk.
Shipyards and power station damaged. According to Army reports there
were numerous explosions and fires in the harbor and fuel dump. Vest
of the southern bay there was a 1,300 m. high column of smoke. Further-
more a 9,000 GRT steamer was sunk outside of the harbor.

On 21 Mar. 8 BM 1,000 mines were laid in Sevastopol harbor.

For reconnaissance in the Arctic Ocean see Enemy Situation, Norway.

VII. Mediterranean Warfare

1. Enemy Situation :

On 21 Mar. German air reconnaissance located task force H at
sea on varying courses near Mallorca between 0935 and 1730. The force
reported by the French on 19 Mar., consisting of 5 ships, was not located
again. It is possible that an error was made in the date, so that this
report also concerned task force H.

The Air Force established that the mission of task force H was to ferry
planes to Malta.

- 214 -

21 Mar. 1942 CONFIDENTIAL

In view of enemy movements east of Malta, it may be assumed that the
eastward advance of the Gibraltar task force is meant to facilitate
convoys from Alexandria to Malta.

There were 3 more submarines in Valletta than on 20 Mar. Otherwise
there was no change by 1625 on 21 Mar.

The convoy approaching Malta from the east was reported by an Italian
submarine for the first time at 1630, consisting of 1 cruiser, 4 destroy-
ers, and 3 steamers approximately 100 miles north- northeast of Derna.
After landing, a German plane reported a force consisting of 14 ships,
3 of them fairly large, in the same sea area. The report of a second
Italian submarine confirmed this information, so that the Italian Navy
believes that the ships are the convoy headed for Malta.

Radio intelligence intercepted only 1 plane report concerning 1 submarine
seen diving at 1556 on a 70° course approximately 215 mile3 east of
Malta.

2. Own Situation ?

The planned mining operation of the 3rd Pt Boat Flotilla was
cancelled because of the weather.

During the transfer of the 6th Motor Mine Sweeper Flotilla from Galta
to Messina on 20 Mar., 3 of the vessels were damaged by running aground
north of Naples. The entire flotilla entered Naples on 21 Mar.

3. Situation Italy :

Enemy planes attacked Benghazi during the night of 20 Mar.
without causing damage.

Upon inquiry of the Naval Staff with reference to the Reuter report,
the German Naval Command, Italy transmitted the report of the Admiral,
Aegean Sea of 19 Mar. concerning the enemy attack on Rhodes in the
night of 14 Mar. While planes were attacking the Cadurme airfield, 1
enemy cruiser and 2 destroyers bombarded the city for 20 minutes from
a distance of 9*000 meters from the north-northeast, without causing
particular damage.

Italian naval forces have been ordered to attack the enemy convoy headed
for Malta. (The LITT0RI0 and 8 destroyers from Taranto, and a group
of 3 cruisers and destroyers from Messina.)

4. Transport of Supplies to North Africa ;

Ship movements according to plan without special incident.

5. Area Naval Group South :

Aegean Sea :

Enemy planes attacked targets in the Athens area in the night
of 20 Mar. Bombs were dropped on Kalamaki. No damage has been reported

Black Sea :

Enemy Situation :

Air reconnaissance obtained no new information. According to
the radio intercept service, the Fleet Command was at sea, evidently on

- 215 -

21 Mar. 1942 CONFIDENTIAL

a battleship. Cruiser A, probably also cruiser D, 4 destroyers, and 2
or 3 submarines were off the southwest tip of the Crimea. Cruiser E was
at sea, but her position vas not dot.-rained.

Own Situation :

No change ral situation. During the night of 20 Mar.

enemy planes attacked Feodosiya and a cruiser bombarded the city for one
hour, evidently from sou-..-, of Ctipe Illi.

For a report on the position of German mines in the harbor of Sevastopol
see l/Skl 6690/42 Gkdos. in War Diary, Part C, Vol. XIV.

VIII. Situation Sast Asia

1. Enemy Situation ;

According to press reports, U.S. troops arrived in Port Darwin.
According to the Military Attache in Bangkok, American planes launched
attacks on Japanese rear communications in Burma from the Chinese Yunnan
province. A state of siege was declared in Australia, and extensive
air defense measures are said to have been taken in Calcutta and Colombo.

2. Situation Japan t

According to the Military Attache at Bangkok, Saigon is the
main supply base for operations in Burma, Malaya, and the South Sea
Islands. The Army Quartermaster General is working in conjunction with
naval commands. Approximately 600,000 GRT have been set aside perm-
anently for supply operations. The Military Attache at Bangkok states
that the large Joint supply dump for ammunition, fuel, and foodstuffs
is insufficiently protected against enemy action or the effects of the
sun.

Fighting on all Burma fronts came to a halt temporarily because of
aupply difficulties.

Additional Japanese landings occurred on the Solomon Islands. It is
planned to establish a submarine base there against U.S. supply lines.

3. Special Item ;

Germany is very much interested in having Japan cut the enemy
supply lines to Russia via the Near Eest and the Caucasus as soon as
possible. For discussions of the Naval Staff about ways to bring about
large-scale operational and strategic cooperation between the German
and Japanese Armed Forces see Wtr Diary, Part C t Vol. XV.

IX. Army Situation

1. Russian zx

Southern . Pr.vy Group ;

Attacks were repulsed on the Feodosiya front. Local attacks
in the sectors of the Von Kleist Army Group and the 6th Army east of

- 216 -

21 Mar. 19^2 CONFIDENTIAL

Kharkov were unsuccessful.

Central Army Group :

House to house fighting Is in progress in the western part of
Vesnlni. Our forces were able to close the penetration point west of
Rzhev. Other local enemy attacks had varying results.

Attacks on our advancing forces between Velizh and Demidov were repulsed.

Northern Army Group ;

At Szavino our lines advanced to the east, and an enemy attack
on the southern wing as well as on the positions west of Kholm was re-
pulsed. The Von Seydlitz Group crossed the Staraya Russa - Kholm high-
way and established a bridgehead 3 km. wide across the Porusye. North
of there another division advanced to the highway leading from Staraya
Russa to the south. The enemy unsuccessfully attacked our new lines of
communications on the Volkhov front. South of Maluksa the enemy took
Demidov. German reserves have been thrown in.

2 . Finnish *>nd Norwegian Front :

Enemy attacks across the Svir were repulsed in the Ladoga-
Svir triangle.

J>. North Africa :

One enemy brigade reconnoitered the Bir Temrad area to the
west and the northwest. Advance units reached the area southwest of
Mar tuba, where artillery and planes forced them to turn south.

*#*♦«»*»*#*»*♦*»*###*»«#*

•

- 217 -

CONFIDENTIAL

22 Mar. 19*2

Sunday

Items of Political Importance

France ;

According to Reuter the U.S. has agreed to resume shipment of foodstuffs
and other supplies to Worth Africa, after Vichy explicitly promised
that neither Madagascar nor the French fleet would be put at the dis-
posal of the Axis povers.

Australia :

The disagreement between the British and Australian governments In con-
nection vlth the Casey case Is now also revealed In British publication
of the vhole discussion and In an Interview vlth the Australian Prime
Minister. For details see Political Review No. 69, paragraph 2 c.

Canada:

In the first secret session of the Parliament since the World War one
of the questions discussed was whether Canada Is still bound to the
motherland, Great Britain, or whether she should now Join the U.S. as
an adult brother.

Sweden :

According to a report from a military source the Swedish armed forces
are making an effort to express very great interest In keeping close
friendly contact with Germany.

Bulgaria :

King Boris will come to Germany on 22 Mar. in order to visit the Fuehrer.

Turkey :

The discussion in Istanbul between the President and the Turkish Ambas-
sador to Berlin, and the subsequent conference with the German Ambassa-
dor, who stopped in Istanbul on his way to Germany, indicate lively
political activity.

E£2£t:

According to the Transocean News Agency*, an unsuccessful attempt was
made on the life of the Egyptian Prime Minister. This is said to have
caused violent anti-British demonstrations in Cairo.

Situation 22 Mar. 19^2
I. War in Foreign Waters
1. Enemy Situation :
Indian Ocean:

Cruisers JAMAICA and GUIANA entered Simons town on 26 Feb,

- 218 -

22 Mar. 19^2 CONFIDENTIAL

Cruiser BROOKLYN, arriving from Trinidad, entered Simonstovn on 22 Feb.,
and vas in Capetown from 2k to 27 Feb. Thereafter she returned to
Trinidad via the U.S.

2. Own Situation :

Tanker GERMANIA entered Bordeaux.

See Radiogram 1700 for information to all ships in foreign waters con-
cerning positions of the Swedish ships in the America traffic permitted
them, and concerning the enemy situation.

II. Situation Vest Area

See Telegram 1200 for the request of the Commanding Admiral, France con-
cerning replacements for the 10 cm. K 18 guns withdrawn from the coastal
defenses.

The Naval Staff Quartermaster Division is attending to the matter.

Otherwise no special incidents.

III. North Sea, Norway, Arc tic Ocean

1. North Sea ;
Nothing to report.

2. Norway ;

Enemy Situation ;

Air reconnaissance sighted 10 steamers in Murmansk in the
morning, 1 cruiser and 1 destroyer in Eina Guba, 4 steamers and 2 escort
vessels in Motovskl Bay headed for Kola Bay.

Own Situation ;

Transfer of the Commander, 8th Destroyer Flotilla with de-
stroyers Z n 2k ", "25", and "26" to the northern area to be at the dis-
posal of the Admiral, Arctic Ocean is to be undertaken on 2J> Mar.

Otherwise nothing to report.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea
Skagerrak patrols have been increased according to plan,
Otherwise no special Incidents.
Ice situation unchanged.

- 219 -

22 Mar. 3?42 COWFIDBirriAl

Merchant Sr.lrclr -
The government of Venezuela ordered 1 German and 5 Italian s teasers

VI. Sutrsariae Warfare

Enezy Situation :

A convoy consisting of 6 stealers with 3 corvettes and 1
vessel, heading vest, passed the Gibraltar Strait at 15?0. A
rding to the radic inter ere vere 3 submarine sitting

at fro* off the American coast. Furthermore U.S. tanker PAH
AMOCO (9,862 GRT) was attacked off the Florida coast.

A British plane In the Mediterranean reported attacking a submarine 30
■lies north of Mars a Hatruh.

According to radio and press reports, the U.S. Army claims that a Ge
submarine vas probably destroyed off the east coast by % ierth bombs.

The Admiralty a the loss of submarine P "38". In Vest Africa
British air bases are being established to combat German submarine;.

2. Ovn Situation ;

A torpedo vas fired at a fast convoy consisting of 5 large
ships escorted by 2 cruisers and 6 destroyers approximately %00 miles
south of the Cape on a 230° course, but the torpedc missed. The subma-

ich vas on her return voyage, vas unable to maintain contact
because of lack of fuel. For suprleraentary report see Var Diary, Part
B, Vol. IV.

VTI. Aerial Warfare

1. 3ri and Vicinity:

German attacks On ships off the east coast around noon vere
unsuccessful. 13 planes mined the Thames during the night.

Mediterranean Theater :

Operations of 40 bombers against the Malta-bound enemy force
vere hindered by a strong southern storm. A large number of the planes
missed the enemy. According to preliminary reports received so far,
German planes damaged 1 steamer of 5,000 GET at 1*25, and at 1600 and

as reportei that 2 more steamers, one of them of 6,000 GRT,
vere damage

i.cks on Malta continued.

See Enemy Situation, Warfare In the Mediterranean for reconnaissance
opera- againet Task Force H in the vicinity of the Balearic Islands.

Zastern Fror. j

lo special reports from the Army fronts .

- 220 -

22 Mar. 1942 CONFIDENTIAL

4. Organization :

The Air Force Operations Staff has made the final decision to
place Coastal Air Group 506 under the 3rd Air Force also In administra-
tive matters. The order contains the following remark:

"As the result of this new command organization there must be no change
In the reconnaissance and bombing missions carried out In the Interest
of naval warfare (Group North)."

Thus the only forces left at the disposal of the Commander, Naval Air
are the 1st Squadron of the 706th Group (at the moment Icebound) and
the 1st Ship Plane Squadron of the 196th Group.

VIII. Warfare In the Mediterranean

1. Enemy Situation :

On 21 Mar. 4 French steamers and 1 patrol vessel passed
Gibraltar toward the east. On the evening of 22 Mar. a DELHI class
cruiser entered Gibraltar from the west. At 1533 on 20 Mar. the Italian
submarine MOCENIGO attacked Task Force H with 3 torpedoes 60 miles
northeast of Oran. The result Is not known. On 20 Mar. Italian planes
sighted 2 suspicious PT boats flying the Italian flag off Cape Serrat,
and attacked them. One of the PT boats exploded after being fired upon,
and the second was forced to enter Bone on 22 Mar., where the crew was
Interned .

These were evidently British gunboats which were flying
the Italian flag.

On 22 Mar. air reconnaissance again located Task Force H in the vicinity
of Mallorca, consisting of 1 battleship, 2 carriers, 1 heavy cruiser,
and 6 destroyers. Contact was maintained from 1020 until 1439. Accord-
ing to hydrophone observation by an Italian submarine the force was lo-
cated approximately 45 miles southeast of Cape de Gata at 2130, evi-
dently returning to Gibraltar.

At 0940 air reconnaissance again located the heavily escorted convoy
sighted in the central Mediterranean on 21 Mar. southwest of Crete;
the convoy was at 34o 10' N, 19© 10' E, consisted of 15 vessels, and
was proceeding west at 14 knots. At 1332 German reconnaissance planes
spotted the force consisting of 5 cruisers, among them 3 of the DIDO
and 1 of the AURORA class, 7 destroyers, and 7 medium-sized merchant
vessels at 34o 02 f N, 18© 35 • E on a 2500 course. At 1400 the convoy
changed course sharply to the south, and at 1450 divided into 2 groups.
One of them consisted of 3 cruisers and 7 destroyers on a 200° course,
the other of 1 cruiser, several destroyers, and the merchant ships on a
30° course. At 1610 the latter group was located 6 miles south of the
escort group. Doubtless this change in formation was undertaken because
it was known that Italian naval forces were in the vicinity. In any
case at 1431 1 destroyer informed the force that 4 unidentified vessels
were sighted to the north, and 1438 these were erroneously identified
as 3 battleships. One British vessel reported the Italian force con-
sisting of 1 battleship and 4 cruisers at 1638 at 33° 48 • N, 17° 14' E
on a 215° course. The last German contact report about the British
force was made at 1825, giving the position of the force as 301° and
140 miles off Benghazi on easterly course. (See Situation Italy.)

- 221 -

22 Mar. 19*2 COHFIDEHTIAL

According to photo reconnaissance, at 0839 there were 1 cruiser and 1
destroyer less in the harbor of Valletta than on 21 Mar.

2. Ovn Situation ;

The 3rd PT Boat Flotilla was inactive because of the weather.
The 4 undamaged vessels of the 6th Motor Minesweeper Flotilla continued
from Haples to Tripoli via Messina and Trapani. The remaining vessels
will fellow after repairs.

At 0030 on 22 Mar. battleship LITT0RI0 and 4 destroyers left Taranto
for operations against the Malta convoy, and 2 additional destroyers
followed thea at 0250.

3. Situation Italy ;

At 0100 on 22 Mar. the heavy cruisers GORIZIA and TRENTO,
light cruiser BAHDE HERE, and 4 destroyers left Messina.

According to Italian reports, at 1643 the Italian naval forces estab-
lished contact with the enemy, which cruiser GORIZIA had reported for
the first time at 1430 at 33° 54' H, 180 07' E. At 1700 the enemy
changed course, laid a smoke screen and escaped to the south. Contact
was lost because of very low visibility, but was temporarily regained
at 1820.

Italian torpedo planes, which took off at O630, attacked the enemy
force at 0940 at 34° 10' H, 19° 10« E (340° and 130 miles off Benghazi).
They reported that 1 CAIRO class cruiser and 1 destroyer were hit def-
initely. 4 planes returned; there is no news of the fifth.

A supplementary report sent by the German Haval Command, Italy as of
1945 is as follows:

"(1) At I63O the LITT0RI0 arrived in the combat area. She opened
fire at I638, but ceased firing at about 1700 because the enemv laid a
smoke screen and escaped. Thereafter contact was lost until 1820.
After that time contact was temporarily regained several times, but low
visibility interfered.

1630.

(2) The GORIZIA group seems to have joined the LITT0RI0 group et I

(3) Unless information to the contrary is still received, it seems
that the enemy so far (1925) was successful in keeping the steamers out
of the range of the Italian naval forces.

(4) The first 20 German bombers landed after an unsuccessful at-
tack. One plane reported hitting 1 steamer.

(5) At 1830 6 British planes (probably torpedo planes) broke
through the German fighter barrage over Malta and flew east."

As of 2100 the situation was as follows:

"At 1900 the Italian naval forces, led by battleship LITT0RI0 broke
off contact with the enemy force and turned back to the north. Up to
now there is no indication that the Italian naval forces damaged or
destroyed any of the enemy forces or steamers during the engagement
lasting from 1430 to 1900 on 22 Mar. The Commanding Admiral, German
Haval Command, Italy can evaluate the operation only after more detailed
reports have been received, since until then it is impossible to under-
stand the course of the operation."

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22 Mar. 19^2 CONFIDENTIAL

No clear picture of the operation between 1420 and 1800
is possible as yet.

4. Transport of Supplies to North Africa ;

Steamer BROOK was unsuccessfully attacked by enemy torpedo
planes on 21 Mar. at 0^30 south of Capo dell 1 Armi. On 22 Mar. trans-
port shipping was interrupted because of the enemy situation. Coastal
traffic proceeded without special incident.

5. Area Naval Group South ;
Nothing to report.

IX. Situation East Asia
Nothing to report.

X. Army Situation

1. Russian Front ;

Southern Army Group ;

Enemy attacks on the Feodosiya front continued, although some-
what abated. In the area of the Von Kleist Army Group the enemy was
able to penetrate our lines temporarily east of Slavyansk. All other
attacks were repulsed. Also in the area of the 6th Army all enemy at-
tacks were unsuccessful. Enemy plane attacks on the rear area scored a
direct hit on the staff t^adquarters of a division, causing high
casualties, Including the division commander and the first staff officer
Our panzer forces repulsed an enemy attack on the center of the 2nd
Army.

Central Army Group ;

Fighting continued at the critical points of the 2nd Panzer
Army. All enemy efforts to gain advantage were unsuccessful.

Northern Army Group :

Enemy attacks in the Kholm area and in the Pola valley were
unsuccessful. Our Group advancing south of Staraya Russa renewed its
attack toward the east. Enemy attempts to break out of the pocket
weBt of Novgorod were unsuccessful. Fierce fighting is in progress at
the breakthrough points south of Maluksa.

2. Finnish and Norwegian Front :
Situation unchanged.

3. North Africa :

Enemy forces were mopped up by a counterattack by parts of
the German Africa Corps. The enemy beat a hasty retreat to the south-
east. German planes supported the operation effectively.

- 223 -

CONFIDENTIAL

23 Mar. 19^2

Items of Political Importance

Great Britain :

A neutral diplomatic source reports concerning the British-Russian con-
ferences that at first Eden refused to discuss political questions re-
ferring to the future. Hovever Stalin insisted on fixing Russia's fu-
ture borders as they were on 22 Jun. 19^1. Ambassador Winant went to
Washington as a result in order to see that pressure is put on London
to give 3talin satisfaction. It is understandable that the Poles are
most anxious about this development.

France ;

According to the German News Agency (DNB) Vichy calls the reports con-
cerning Franco-American agreements and resumption of deliveries to North
Africa biased and untrue.

U.S.A. :

4

According to the German News Agency (DNB) reporting from Buenos Aires,
a military conference of all 21 American republics began in Washington
on 23 Mar.

The Chilean War Minister announced that U.S. war materiel was carried
across Chilean territory to Peru by U.S. personnel.

Japan :

The Japan Times , which is close to the Foreign Office, makes another
appeal to Australia to come to an understanding. For contents see
Political Review No. 69, paragraph 11.

Rumania :

Press circles claim that the sharp attack on Hungary by Foreign Minister
Antonescu was expressly approved by Germany in order to exert pressure
on the new Lallay government, which is not desirable. The press states
that Rumania will under no circumstances tolerate any further insults
on the part of Hungary.

Bulgaria :

As background for King Boris 1 visit to the Fuehrer it is rumored that
the changed German- Turkish relations may have relieved the situation on
the Turko -Bulgarian frontier, making it possible for the Bulgarian Army
to take over other assignments in support of the German Army.

Argentina :

The fact that the elections were not held, which is decisive for
Argentina's future attitude to the Rio resolutions, Is termed as probably
favorable for the government.

Uruguay :

In a note of protest to Germany as a result of the sinking of steamer
MONTEVIDEO by a German submarine, the government reserves the right
to demand indemnities.

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2? Mar. 19^2 CONFIDENTIAL

Cuba ;

According to Reuter 2 British Swordfish squadrons arrived in Cuba for
protection against German submarines.

Conference on the Situation with the Chief, Naval Staff

I. The Chief, Naval Communications Division reports about the sugges-
tion made to the Commander in Chief, Air concerning the necessity of im-
proving plane recognition signals and about the Italian request for de-
livery of additional search gear. This request must be turned dovn at
the present time, however, since our own needs can hardly be covered.

II. The Chief, Naval Staff Quartermaster Division reports on the follow-
ing:

a. It will be unnecessary to divide the mine ships into 2 groups,
since they cannot be used in the west area now. In the future the single
mine ship force will be under the operational command of the Groups, and
under the administrative command of the Fleet.

The Chief, Naval Staff agrees.

b. The Naval Liaison Officer at the Armed Forces High Command
reported that the Fuehrer directive concerning command organization of
coastal defenses was carried out by the Armed Forces High Command.

The Chief, Naval Staff orders that no steps be taken until the directive
has been received, so as to determine whether it will interfere with
sea defenses j if so, this must be prevented.

c. It is suggested that it might be wise to place the Admiral,
Arctic Ocean under the direct operational command of Group North, al-
though he can be left under the administrative command of the Commanding
Admiral, Norway.

The Chief, Naval Staff agrees, provided this meets the approval of the
Commanding Admiral, Norway.

III. The Chief. Foreign Affairs Section, Naval Staff Operations Division
reports as follows:

a. The French have not yet reached a decision on the request con-
cerning the transfer of k PT boats through France.

b. With reference to the departure of Norwegian steamers from-
Swedish harbors, the Foreign Office, at the request of the Naval Staff,
has initiated a political demarche in Stockholm. The attitude of the
Swedish Foreign Minister is unsatisfactory. For details see War Diary,
Part C, Vol. VIII.

c. A note has been sent to the Chilean government concerning the
sinking of steamer TOLTEN. For text see War Diary, Part C, Vol. VIII.

Special Items :

I. When sending the minutes of the Garmisch conference, Admiral

- 225 -

23 Mar. 194 CONFIDENTIAL

Riccan":, Chief of the Italian Naval Staff, expressed his regrets to the
Commander i.i Chief, Navy about the fact that it is impossible to send
additional ir.ctor minesweepers into the Mediterranean, and thanks heartily
for the information sent by the Commander in Chief, Kavy that an addi-
tional 20, COO tons of fuel oil vill be allocated for March of this year;
he values thia highly as a sign of good comradeship.

II. Referring tc the tasic Armed Forces High Comraand, Operations Staff
communication of 1 -• Dec. 19^1, which states that the open coasts of
Holland and western and northern Jutland are not suitable for enemy
landings, the 82nd Infantry Division called attention on 7 Feb. 1942 to
the fact that enemy landing attempts are altogether possible on the
western part of the Dutch coast. The Division bases this assumption
on the Importance of the operational targets there which challenge the
enemy to attempt landings, also on the favorable geographical conditions,
the fact that the enemy's jumping off bases are nearby, end the fact
that the Dutch population would probably aid the enemy. The Division
then proceeds to enumerate In detail the tactical and technical possibil-
ities for landing operations, examining the conditions in the sectors
particularly endangered. The Division comes to the conclusion that the
stationary naval coastal fortifications beet meet the requirements for
defense; in the open coastal areas between the naval fortifications
and In the rear areas, however, it is necessary to rebuild the entire
defense system similarly to the Westwall. Naval Station, North supports
the request made by the Commander in Chief, Vest and the Army High Com-
mand that tho priority rating assigned to the Dutch defenses In the basic
directive of the Armed Forces High Command should be changed from 3 tc 2 .

The Naval Staff cannot agree with this view, however, but continues to
adhere to the priority assigned by the Armed Forces High Command which
places the Dutch area behind Norway, northern France and Belgium, even
though Holland Is undoubtedly threatened.

The Naval Staff Quartermaster Division will attend to the matter. For
copy of the opinion of the Naval Staff Operations Division see l/Skl
I op 61 52/42 Gkdos. in War Diary, Part C, Vol. X.

Situation 23 Mar. 19*12

I. War in Foreign Waters

1. Enemy Situation :

Indian Ocean ;

Southwest of Port Elizabeth 2 steamers sent distress signals
reporting suspicious vessels. These reports were later cancelled by
radio stations ashore.

Furthermore the radio intercept service located several British vessels
In the Mauritius area, presumably en route to Australia.

Pacific Ocean ;

The reported U.S. cruiser and 1 transport vessel with war
material left Antofagasta on 19 Mar.

2. Own Situation ;

Radiogram 1633 informs the DOGOERBANK that on 18 Mar. at 17^0

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#

•

23 Mar. 1942 CONFIDENTIAL

the British radio station Jacobs broadcast the mine warning given by
the Admiral at Simons town for 33° 56' 30" S, 17<> 22' E (the message was
unfortunately not intercepted completely), and that the Naval Staff
deducted from this that the mining mission was carried out according to
plan, so that the ship no longer needs to send a radio report to this
effect.

Radiogram 1926 informs ship "28" that the Naval Staff will take over
command of the auxiliary cruiser at 1600 on 24 Mar. (German summer time).

Radiogram 2105 informs all ships in foreign waters that blockade runner
RIO GRANDE is sailing as SALACIA, and the FUSIJAMA as ANGLO INDIAN.

Reports on the enemy situation are sent via Radiograms 0711, 1304, 1507*
1814, and 1901.

II, Situation Vest Area

1. Enemy Situation ;

According to information captured with British agents, a
British assault troop operation seems to be in preparation against the
northern French coast in order to take prisoners. 3 companies of 200
men each are supposed to take part in the operation.

According to air reconnaissance, there were 5 PT boats in Portland.

2. Own Situation :
Atlantic Coast ;

Nothing special to report.

Channel Coast :

Fighter bombers reconnoitered the enemy Channel harbors and
attacked the motor gunboat base at Newhaven with good results.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation:

According to the radio intercept service, a northbound and a
southbound convoy left the Thames in the afternoon. There was lively
reconnaissance activity in the direction of Bergen, the German Bight,
and the southern part of the North Sea in the evening.

Own Situation :

A French PT boat ran aground off Blavandshuk. Ship "13" and
ship "24" are en route from Hook of Holland to the east. Convoy and
escort service proceeded without special incidents.

2. Norway :

- 227 -

23 Map. 19^2 CONFIDENTIAL

Enemy Situation t

According to air reconnaissance, a convoy consisting of 6
steamers, among them 2 of 5,000 GRT left Murmansk Bay on a northerly
course. Otherwise the naval situation in the Arctic Ocean is unchanged.

Acceding to radio intelligence, convoy PQ 13 was located on 19 Mar.,
pre* isably en route from Iceland to Murmansk.

Ovn Situation :

The picket boat was fired upon for the second time off Petsamo
by a Russian batti-ry. ^e 12th Subchaser Flotilla with 6 vessels, and
4 vessel? of the 35th Minesweeper Flotilla arrived in Stavanger. Mine
ship OSTFiAFtS vas unable to proceed from Stavanger because of fog.

Convoy and supply operations according to plan.

IV. Skagerrak, Baltic 3ea Entrances, Baltic Sea

1. En emy Situation :

A report has been received from Goeteborg that a number of
Horwegisn ships have been transferred to the outer harbor. It' is im-
possible to tell whether the ships are only assembling for the break-
through, or whether it is the actual breakthrough itself.

2. Own Situation :

On 22 Mar. the Naval Attache at Stockholm gave a detailed re-
port about the situation in Goeteborg and the state of the discussions
with the Swedish government. For copy see l/Skl 6701/42 Gkdos. in War
Diary, Part C, Vol. III. The Naval Staff informed Group North and the
Air Force Operations Staff on 22 Mar. The report is essentially the
same as that transmitted by the Foreign Office on 21 Mar.

See Telegram 1320 for orders of Group North to the Commanding Admirals,
Defenses North and Baltic Sea to decrease the patrols.

In Telegram 1725 Group North advises the Commanding Admiral, Defenses
North, Commanding Admiral, Defenses Baltic Sea, Commanding Admiral,
Norway, and the Commander, Naval Air (copies to the 5th Air Force, the
3rd Torpedo Boat Flotilla, the 6th PT Boat Flotilla, and the Naval
Staff) that the danger that the Norwegian ships might break through will
increase as soon as the ice situation improves. At that time preventive
measures must again be Increased.

According to a report from Group North, the SCHLESIEN, icebreakers
CASTOR and STETTIN, as well as 3 steamers which proceeded to Hamburg,
finally arrived in Kiel on the afternoon of 22 Mar.

South of Kjelsnor 3 steamers are still icebound, and in urgent need of
supplies.

The SCHLESIEN is in need of a week's repairs. The CASTOR and the
STETTIN will again be ready for operations on 24 Mar.

The Group is planning to send these 2 icebreakers to the aid of the 3

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#

23 Mar. 1942 CONFIDENTIAL

steamers near Kjelsnor; this will take 4 to 6 days. Subsequently these
ships, together vith the SCHLESIEN and GNEISENAU are to proceed through
the ice barrier to the east.

Consequently the CASTOR and EISBAER will not be available beginning 3
Apr. for bringing the Elbe-Oslo transports into Oslo as requested by the
Naval Staff Quartermaster Division, Shipping and Transport Branch.

Group North requests that the Naval Staff make a new decision about the
urgency sequence of these tasks (see Telegram 2301).

Between 13 Feb. and 23 Mar. a total of 14,512 men, 1,578 horses, and 1,108
vehicles were transported to Norway; 2 transport groups sailed from
Copenhagen to Oslo, 3 from Hamburg to Kristiansand South, and 1 shuttle
steamer made 7 round trips between Hirtshals and Kristiansand South.

V. Submarine Warfare

1. Enemy Situation :

»

' The ILLUSTRIOUS was located at sea off the west coast of
Scotland on 22 and 23 Mar. A plane was ordered to attack a submarine
located in the approaches to the North Channel.

Off the U.S. East Coast, U.S. steamer BAYOU CHICO (5,401 GRT) was
chased and probably sunk by a submarine 150 miles southwest of Cape
Race. At any rate an SOS signal concerning a life boat was intercepted
from this area. The British tanker EMPIRE STEEL (8,150 GRT) was tor-
pedoed 600 miles east of Cape Hatteras, and steamer PETER ROGEN was tor-
pedoed 570 miles southeast of Bermuda.

According to an American radio report the torpedoed steamer AMERICAN
TRADER reached a U.S. port. According to a report from the U.S. Navy
Department a small Honduran steamer was sunk by a torpedo off the Atlan-
tic coast.

According to the Naval Attache at Buenos Aires, Argentine naval officers
assume on the basis of intercepted radio communications that British
submarines are using Montevideo as a supply base, and that this is meant
to create incidents with Argentine merchant ships off the La Plata.

2. Own Situation :

The following gratifying reports have been received from our
submarines off the American coast:

Submarine U "124" (Lt. Johann Mohr) reports sinking a total of 52,922
GRT south of Cape Lookout, among these 6 tankers; in addition she tor-
pedoed 1 tanker of 11,615 GRT.

From the Cape Hatteras area U "332" (Lt. Liebe) reported sinking a total
of 22,016 GRT.

For supplementary situation report see War Diary, Part C, Vol. IV.

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23 Mar. 19^2 CONFIDENTIAL

VI. Aerial Warfare

1. British Isles and Vicinity ;

During a fighter "bomber attack on Newhaven (see Situation West
Area) 1 steamer of 3,000 GRT was sunk. During the night 9 Ju SB's at-
tacked Portland, and 18 Do 217' s attacked gunboat berths in Dover.

2. Mediterranean Theater ;

The report of the Commanding General, Armed Forces, South,
closed at 1400, contains the following information:

On 22 Mar. 124 reconnaissance planes and bombers, as well as 12 Italian
torpedo planes participated in operations against the westbound convoy.
In addition, 110 fighters and 39 bombers operated against Malta contin-
uously. The weather grew constantly worse during the day and visibility
decreased to 100 and 200 meters. The wind turned into a storm, inter-
fering greatly not only with air operations but also with operations of
the Italian naval forces. Because of the bad weather some British
planes could not be prevented from taking off from Malta in the evening
for reconnaissance or torpedo missions. 2 enemy planes were shot down,
however. Dive bombers could not operate because of the weather. At
the end of 22 Mar. the following results could be definitely reported:

German planes sank 1 large merchant ship and damaged 2 others. Italian
torpedo planes sank 1 merchant ship and 1 destroyer.

The Commanding General, Armed Forces, South reports as follows about
23 Mar.:

The British convoy was again located in several groups on the morning
of 23 Mar. in the area directly south and southeast of Malta. In spite
of continued bad weather and especially difficult starting conditions
at the air bases, bombers and reconnaissance planes went into action.
2 more merchant ships had been sunk by the German Air Force by 1^00.
It is possible that another British vessel was sunk, judging from the
radio intercept service. 2 or 3 merchant ships were observed entering
Valletta. Reconnaissance reports about noon Indicate that the majority
of the enemy forces turned back east.

3. Eastern Front :

On 21 and 22 Mar. very many planes operated on all Army
fronts.

On 23 Mar. a large number of planes attacked Tuapse successfully.

For reports on reconnaissance in the Arctic Ocean see Enemy Situation,
Norway.

VII. Warfare in the Mediterranean >

1. Enemy Situation :

Task Group H, including the MALAYA, ARGUS, EAGLE, HERMI0NE,
and several destroyers, returned to Gibraltar at 0800. One DELHI class
cruiser left Gibraltar in westerly direction at 1415.

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#

23 Mar. 19^2 CONFIDENTIAL

A report of the French Armistice Commission confirms the supposition
that the gunboats attacked on 21 Mar. off Cape Bon were British. The
vessels were en route from Gibraltar to Malta. The crews of both were
interned .

Evidently during the night of 22 Mar. the greater part of the Malta con-
voy continued to the port of destination. On 23 Mar. at 0700 the convoy
was again located by reconnaissance planes, and at that time was divided
Into several groups, approximately 30 to 50 miles south and southeast
of Malta. The numerous reconnaissance reports do not give a clear pic-
ture of the size of the various groups and the total number of ships,
nor do they indicate exactly the successes achieved during the heavy
Italian and German air raids. Above all, there is no exact report
about the number of merchant vessels which came from the east, since
photo reconnaissance did not confirm the report given on 22 Mar. by
German air reconnaissance that there were 7 of them. It is also note-
worthy that photo reconnaissance of Valletta at 1800 on 22 Mar. showed
2 steamers more than on the previous day.

Air reconnaissance reported a force of 2 cruisers, 5 destroyers, and 2
unidentified vessels at 0833 150 miles north of Benghazi; at 1730 air
reconnaissance reported 11 vessels on easterly course north of Derna;
and at 1900 this force was sighted by 1 submarine north of Tobruk. Con-
sequently the German Naval Command, Italy believes that a part of the
convoy turned back to the east before reaching its destination.

It Is just as possible, however, that these ships were
the empty steamers returning from Malta according to
plan.

2. Situation Italy ;

During the night the naval forces evidently returned together
and then separated at 0700 on 23 Mar. in quadrant CO llM in order to
approach their bases, Taranto and Messina. Cruiser BANDE NERE remained
behind, evidently as a result of damage of undetermined character. De-
stroyer LANCIERE was sighted sinking In quadrant CN 3996. The position
of destroyer SIRR0CC0 is not known. Cruiser TRENT0 was sent back to
assist her.

The German Naval Coiamaad, Italy sports as follows about the results
achieved :

(1) The Italian Fleet Commander reported that during the en-
gagement at 1630 on 22 Mar. hits were seen to have been scored on the
enemy naval vessels. Contact was broken off because of very low visi-
bility.

(2) The Italian Air Force reports the following successes
for 22 Mar. :

(a) Air Force Libya: 9 torpedo planes attacked at 0935.
2 hits were scored on a cruiser and 1 on a destroyer. At 1107 1 hit
was scored on each of 2 cruisers. 1 medium-sized steamer was hit for-
ward.

(b) Air Force Sicily: 9 planes attacked from 1800 to
1830. 2 cruisers were hit and 1 of them was seen sinking by another
plane. 1 light cruiser or destroyer was hit by a torpedo. 1 large
steamer was hit by 2 torpedoes, and 2 additional steamers by 1 torpedo
each.

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23 Mar. 1942 CONFIDENTIAL

(3) The German Air Force established contact with the enemy
naval forces at 0700 on 23 Mar. 1 steamer was definitely sunk south-
east of Malta. One steamer received a direct 250 kilogram hit, but kept
on going. 1 other steamer was sunk at noon. The Commanding General,
Armed Forces, South assumes that a total of 4 steamers was definitely
sunk by the German and Italian Air Forces.

The LITT0RI0 reported sighting 2 submarines in the Gulf of Taranto on
the return voyage.

3. Own Situation :

No operations were carried out by the 3rd PT Boat Flotilla
because of the weather.

4. Special Item :

Emphasizing the necessity to capture Malta by making use of its
present weakened defenses as the result of our offensive tactics, the
Naval Staff asked the Naval Representative on the Armed Forces High Com-
mand, Operations Staff to express an opinion about Italian plans and
about the operation as such.

Thereupon the Armed Forces High Command Operations Staff Instructed the
German General at the Italian Armed Forces High Command (with copy to
the Commanding General, Armed Forces, South) to obtain the necessary
information from the Italians, and told him that Germany could hot con-
tribute many forces, and that these would be confined to the German
air and naval forces already in the Mediterranean, as well as a few
improvised Army units from the reserves of the German Africa Corps in
southern Italy.

First the Commanding General, Armed Forces, South reported on 11 Mar.
that the Italians are seriously planning to take Malta as soon as pos-
sible, and that the Italian High Command expects the operation to be
launched In July at the latest; then the German General at Rome reported
on 18 Mar. that on the basis of a statement made on 17 Mar. by General
Cavallero in the presence of the Commanding General, Armed Forces,
South, 1 Aug. appears to be the earliest possible date for the operation.
Supported by the Commanding General, Armed Forces, South, the German
General, Rome has asked the Italians to investigate whether It would be
possible to move up the date of the attack, in case the present air
attacks succeed in weakening Malta to such an extent that a surprise
attack might be successful. They have agreed to consider the matter.
Preparations are being made to launch the attack the beginning of August.

It would be unfortunate if such a delay should become
necessary, since it will be difficult to maintain the
present offensive operations for such an extended period.

For copy of telegram see l/Skl 636/42 Gkdos. Chefs. In War Diary, Part
C, Vol. XIII.

5. Transport of Supplies to North Africa :

Enemy operations and weather conditions interfered with ship
movements. No special incidents.

6. Area Naval Group South :
Aegean Sea :

Nothing special to report.

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23 Mar. 1942 CONFIDENTIAL

Black Sea : ,

Enemy Situation ;

According to the radio intercept service, a force consisting
of large ships with the Fleet Command aboard, 4 destroyers and presum-
ably 2 cruisers entered an unidentified base in the early morning.
Several destroyers and submarines were located at sea in the Crimean
area.

Own Situation :

No special incidents.

At the request of the Army General Staff (intelligence Division, East),
the Naval Staff transmits its opinion on Russian landing plans in
Bulgaria; the Naval Staff believes it unlikely that the Russians will
make such landings on a large scale in order to form a new front, es-
pecially if we continue to be successful in the fighting in the Crimea.

For copy see l/Skl 6836/42 Gkdos. in War Diary, Part C, Vol. XIV.

VIII. Situation East Asia

According to press reports, a large Japanese fleet force is advancing
in the direction of Perth and southwest Australia.

Coastal batteries on the Christmas islands supposedly sank a Japanese
submarine .

According to a report from Tokyo, -the Dutch commander on Sumatra sur-
rendered with 1700 of his men.

IX. Army Situat ion

1. Russian Front :

Southern Army Group :

Furious hand to hand fighting took place during engagements
to throw back an enemy advance on the southern wing of the Feodosiya
front. Enemy attacks at the breakthrough point east of Slavyansk were
unsuccessful. An advance with our tank forces west of Slavyansk
achieved local success. Fighting is still going on around the strong-
point west of Balakleya. East of Kharkov enemy attacks continue.

Central Army Group :

Southwest of Sukhinichi the enemy succeeded in penetrating
our positions. Attacks east of Orel were repulsed, however. A German
surprise attack on the highway to the south between Demenskoye and
Yukhnov in the 4th Army sector was successful. Stubborn fighting
around Yelnya and northeast of Gzhatsk, as well as near Hostovaya and
south of Byeloi.

Northern Army Group :

- 233 -

23 Mar. 19^2 CONFIDENTIAL

Fighting is in progress near Kholm and around Staraya Russa.
The Von Seydlitz Group was able to gain ground to the east in spite of
stubborn enemy resistance. Southvest of Yamno the enemy launched an
unsuccessful attack against the defensive front. In the rear area the
enemy attempted to break out of the pocket to the north. At Maluksa
reinforced enemy units continued to advance. Ve withdrew our line to
the Tigoda.

2. Finnish and Norwegian Front ;
Situation unchanged.

3. North Africa :

Normal enemy reconnaissance activity. Lively air activity.

Special Item ;

The fight of the Panzer Army, Africa is a decisive factor in
warfare in the Mediterranean, and has the goal of eliminating 11-
tary and political influence of Great Britain in the Mediterranean! ai
of driving the British from their bases in Gibraltar, Malta, and Svez.
The fight for Suez in particular emphasizes the great and decisive im-
portance of naval warfare, so that the closest possible cooperation in
planning is necessary between the Navy and the Panzer Army, Afri~
Therefore the Navy is considering attaching a naval liaison officer to
General Rommel's staff. For copy of these considerations see War Diary,
Part C, Vol. XIV.

####*♦»###*«#♦*#«*»*♦#***

- 234 -

•

COMFIDEHTIAL

24 Mar, 19^2

Items o f Political Importance

Great Britain :

According to reports of Cripps 1 statement In Delhi, negotiations vith
the Hindus ver-e emphasized; the Mohammedans were not mentioned. Cripps
stated that self-government for India is the aim of the British policy.
There is no time to be lost; he has only 2 weeks to spend in Delhi, so
that length? discussions are impossible at this time. Moreover no fun-
damental change can be made in the War Cabinet's decisions on India.
Another source reports that the future position of India will be similar
to that of Egypt, as fe.r as Great Britain is concerned. A British-
Indian and Indian-Allied pact will be concluded, in which India will
have to make the usual promise not to make a separate peace. India is
to be represented at the peace conferences as an independent nation.
It is not planned to divide India into a Hindu and a Moslem state. A
statement by Gaudhi is noteworthy, according to which India wishes to
be assured that the "scorched earth policy" will not be applied to
India.

Sweden :

For an account of efforts made by the Swedish Government to avoid
jeopardizing its neutral position because of one-sided opinions of the
press, see Political Review, No. 70, paragraph 3.

Turkey :

According to the German Ambassador, the Foreign Minister stated that
Turkey hopes to be able to stay out of the war. The attitude of the
Turkish people toward the Rus so-German war cannot be judged from the
reaction In the big cities, but rather in the country, where each German
success is greeted enthusiastically, while Russian successes are de-
plored. Because of this attitude of the Turkish population it is en-
tirely out of the question that Turkey might enter the war on the side
of Russia.

Argentina :

An Argentine commission sent to the U.S. for the purpose of buying
weapons was unable to obtain any commitments in Washington.

Chile:

Chilean diplomatic circles believe that Chile will continue to follow
a neutral policy. The new- Foreign Minister, who is friendly to the
U.S., will not be able to put through anything with which the new
President disagrees. The latter, however, will not tolerate breaking
off relations with the Axis under any circumstances.

This 6pinion is evidently confirmed by the attitude of
the Chilean government in the case of the steamer TOLTEIf.

Japan :

The extension of the fishing agreement with Russia has been greeted
with satisfaction. The Japanese press reports that the attitude of the
Russians during the discussions shows how anxious Russia is to avoid

235 -

24 Map. 1942 CONFIDENTIAL

conflict in the Far East. Nevertheless the belief has also been ex-
pressed in some quarters that in spite of this agreement it is difficult
to tell how Russo-Japanese relations will develop in the future.

The Chief, Naval Staff is on an official visit to Ploen and Kiel, and
therefore not in Berlin.

Situation 24 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation ;

South Atlantic :

A Spanish steamer reported that on 17 Mar. she was Inspected
twice off Freetown by what seemed to be British cruisers. According to
an Italian report there were 1 cruiser in Saldanha Bay off Capetown and
2 cruisers in Simons town on 24 Mar.

Indian Ocean :

According to an Italian report there are 2 British eruisers
and 5 submarines in Durban at the present time. The Durban naval forces
are being used to patrol the Mozambique Strait. Only 2 U.S. cruisers
are said to be in South African waters at the present time.

2. Own Situation ;

The Commander in Chief, Navy expresses his particular appre-
ciation to the captain and crew of the DOGGERBANK for carrying out the
very difficult special assignment. See Radiogram 1201 for information
to this effect to the DOGGERBANK and for citations.

Radiogram 2204 informs ship "10" that ship "28" left western France on
20 Mar., and directs her to send her war diary to the Naval Attache at
Tolcyo via the REGENSBURG and TANNENFELS. The Naval Attache will wire-
less pertinent excerpts.

Reports on the enemy situation were sent by Radiograms 0231, 0417,
0612, and 2351.

II. Situation Vest Area

1. Enemy Situation :

According to air reconnaissance, there were 9 eastbound
steamers south of the Isle of Wight in the afternoon. 3 steamers were

seen entering Portland. The merchant vessel attacked by the Air Force
off Newhaven on 23 Mar. was seen beached.

2. Own Situation :
Atlantic Coast :

No special incidents.

- 236 -

24 Mar. 1942 CONFIDENTIAL

Referring to the Fuehrer directive that arrival and departure of block-
ade-runners at the western French coast should be adequately safeguarded,
the Naval Staff points but to the Air Force Operations Staff that the
long-range reconnaissance which Is essential for this purpose will have
to be taken over by FW 200 planes, since there is only one squadron of
He 115' s left in the west area, and there are no reserves. Since there
are at the present time 9 blockade- runners in Bordeaux, 5 more are ex-
pected to arrive with very valuable cargoes before the end of May, and
prizes can also be expected, the Commander in Chief, Air is requested
to keep this matter in mind when withdrawing forces from the French
west .coast as planned. For copy of this communication see l/Skl I k
625/42 Gkdos. Chefs in War Diary, Part C, Vol. II b.

Channel Coast ;

Minesweeper M 3615 sank off Dunkirk as the result of a mine
hit in water 10 meters deep. It Is noteworthy that she is a wooden
vessel, which shows that such vessels are no longer safe against non-
contact mines where the water is as shallow as this. In the afternoon
there was lively enemy air activity over the Channel coast.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation :

According to air reconnaissance there was a convoy in the
outer Thames in the afternoon on northeasterly course. The size of the
convoy was not indicated. There was moderate air activity in the vicin-
ity of the Norwegian coast.

Own Situation ;

In the area of the Commanding Admiral, Defenses, North, convoy
and mine sweeping operations were somewhat hampered by fog, but other-
wise proceeded according to plan and without incident.

The Naval Staff informs Group North that it would be wiser to use LMB
equipped with FAB XI instead of the TMB mines which had been planned
for the mining of the Channel, since it is more difficult to sweep the
LMB mines. For copy of telegram see l/skl I e 6389/42 Gkdos. In War
Diary, Part C, Vol. VI.

2. Norway ;

Enemy Situation ;

According to air reconnaissance there were 6 medium-sized'
freighters in the harbor of Murmansk and 6 in Polyarnoye in the morning.
2 steamers were reported leaving Polyarnoye.

According to a report from an agent (not yet proved to be reliable)
from Sweden, Norwegian partisan activity and sabotage against German
supplies, including those being transported via Sweden, may be expected
during the imminent British-American operation against the western
Islands off the north Norwegian coast at the end of March or beginning
of April.

- 237 -

24 Mar. 1942 CONFIDENTIAL

Ovn Situation

The northern mine ship group, including the BRUMMER and the
COBRA entered Tromsoe after laying the "Bantos A minefield according
to plan. Convoy activity along the arctic coast as far as the vest
coast according to plan. Along the southern part of the vest coast
shipping is hindered by fog, considerably in some places.

For brief report of cruiser HIPPER concerning her transfer to Trondheim
betveen 19 and 21 Mar. see l/Skl 6972/42 Gkdos. in War Diary, Part C, Vol.
II a.

•

It is notevorthy that the cruiser made the voyage alone during the night
of 19 Mar. at a speed of 30 knots, since the torpedo boats and destroyers
assigned to her vere not able to keep up because of the bad veather.
The ship's radio intercepted an enemy air reconnaissance report that
cruiser Z "26" vas sailing alone near Feiestein and that enemy bombers
were sent out against the force. Expecting British torpedo planes, the
cruiser concealed herself betveen the steep cliffs of the Krakhellen
Sound during the evening tvillght.

The ships' s navigational achievement deserves full
recognition.

See Telegram 1031 for Group North's instruction concerning the transfer
of the NORDMARK to Trondheim to be at the disposal of Group North.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

Situation unchanged.

Concerning operations by icebreaker CASTOR (see War Diary 23 Mar.), the
Naval Staff believes that the ice situation in the Oslo Fjord vill
probably be somevhat less difficult during the next 6 to 10 days, so
that icebreakers vill not be needed there.

The Naval Staff considers the following to be the most suitable sequence
for tasks to be undertaken by the Icebreakers;

(a) Freeing the rest of the SCHLESIEN convoy.

lb) Transferring the GNEISENAU from Kiel to Gdynia.

(c) Escorting the steamer LEONHARD from Svinemuende to Copenhagen.

(d) Depending on the ice situation, assisting the transports in
the Sound from Copenhagen to Oslo, and operating in Riga Bay.

For copy of this telegram to Group North see l/Skl 6952/42 Gkdos. in
War Diary, Part C, Vol. III.

s

V. Submarine Warfare

1. Enemy Situation ;

According to radio intelligence, convoy SC 75 vas at about
47° N, 50° 35' W on a 60° course on the evening of 22 Mar. Convoy SC
76 left on 24 Mar.; assembly area in the Sable Island area, course via
43«> 20' N, 590 10' W.

- 238 -

24 Mar. 1942 CONFIDENTIAL

According to an Italian report, 4 British corvettes entered Horta on
21 Mar. in order to take on coal. More corvettes are expected there.

Submarine warnings were issued by Freetown for the sea area south and
east of Monrovia.

Reports have been received front the American east coast concerning
sighting of submarines; also distress signals from the two U.S. tankers
PAN RHODE I3LAND (7,699 GRT) and OLNEY (7,492 GRT) from southwest of
Cape Lookout. The British tanker ATHELVIKINO (8,779 GRT) was at 38° N,
50° 59' W south of Newfoundland or; the afternoon of 23 Mar., probably
being towed by an American vessel.- The U.S. fishing steamer MAYFLOWER
sent an SOS signal from 60 miles southwest of San Salvador. The Costa
Rica government released a submarine warning for the area northwest of
Puerto Limon. According to the Associated Press, the U.S. steamer
TAXON was sunk by a submarine off the coast of Rio Grande del Norte en
route to Montevideo - Buenos Aires.

2. Own Situation :

A returning submarine gained contact with a southwestbound
convoy at 2230 about 500 miles east of Cape Race. The convoy consisted
of 25 steamers and 5 destroyers. A submarine in the vicinity was sent
to relieve the shadower. Success reports and additional information
about the situation are in War Diary, Part B, Vol . IV.

VI. Aerial Warfare

1. British Isles and Vicinity ;

During daylight incursions over the west area 9 Spitfires
were shot down. Portland was attacked by 28 planes in a night raid.
Only 3 enemy planes flew over German territory in the night of 24 Mar.

2. Mediterranean Area ;

See Situation Italy for the report by the Commanding General,
Armed Forces, bouth abouL the ^j..**** results ot the German arid Italian
attacks on the Malta convoy on 22 and 23 Mar.

See Enemy Situation, Warfare in the Mediterranean for results of recon-
naissance in the Malta area.

Units up to squadron strength attacked the harbor of Valletta and the
ships there constantly from the early afternoon to midnight. 1 steamer
of 2,000 GRT was damaged, and a cruiser was hit amidships by a heavy
bomb. The environs of the arsenal, the barracks, and storehouses at
the large harbor were badly damaged. After 1600 the Malta radio was no
longer heard.

On 23 Mar. enemy planes with strong fighter cover attacked our airfield
at Mar tuba. Small casualties a*d damage.

3. Eastern Front ;

No reports have come in from the Army fronts.

On the evening of 23 Mar. a steamer of 5,000 GRT was sunk by an aerial
torpedo south of Balaklava. On 24 Mar. 13 Ju 87' s attacked the harbor

- 239 -

24 Mar. 19-2 CONFICZ.VTIAL

of Murmansk and scored 3 direct hits on the wharves and 2 on storehouses

VII. Warfare in the Mediterranean

1. Snemy Situation ;

No change in the ships at Gibraltar. Task Force H is in the
harbor. 102 planes were seen there.

This is an unusually large number.

Air reconnaissance observed a merchant ship with the stern grounded
directly east of Marsa Scala (Malta), nearby 3 destroyers and a paddle
steamer. Later reports called the 3 destroyers tugs.

Photo reconnaissance of Valletta at noon located 3 cruisers, 7 destroyers
5 submarines, a minelayer, a harbor tanker, and 4 steamers in the har-
bor. At the same time a steamer escorted by 3 destroyers and 2 patrol
boats was seen northeast of Malta (distance from there was not reported) .
Thus 6 steamers were located in Valletta or in the immediate vicinity of
the island. It is uncertain whether these are all new arrivals, or
whether the 2 merchant steamers observed in the last photo reconnais-
sance did not leave but should be included in this number. One of the
steamers in the harbor was reported to be on fire.

According to the radio intercept service the leader of the escort forces
for the Malta convoy reported a bombing attack at 0747 at 314° and 105
miles from Alexandria. There are no further reports of sighting ships
between 20° and 27° E.

According to the Italian radio intercept service, at about 1900 a British
(probably surface) vessel was located 85 miles west of Punta Falo and
another 50 miles west of Malta. The Italian Navy assumes that these are
damaged vessels, and will send out Italian subchasers from Pantelleria.
According to the German radio intercept service, at 1625 there was a
British vessel 90 miles south of Gaidaro Island at 33° 20' N, 25° 40' E.

2. Situation Italy ;

The LITT0RI0 arrived at Taranto with 3 destroyers on 23 Mar.
at 1815. The GORIZIA and the TRENT0 entered Messina, the first at noon
23 Mar., the latter on 24 Mar. The BANDE NERE also arrived at Messina.
The destroyer LANCIERE was reported for the last time sinking on 23 Mar.
at 1000 at 350 37' n, 170 16' E. No more reports have been received
from the destroyer SCIR0CC0 since the afternoon of 23 Mar., nor from the
destroyer GRECALE since 23 Mar. at 1540. Measures to assist these ves-
sels continue. The German Naval Command, Italy reported at 1350 that
according to reports so far, some of which need to be verified, German
and Italian planes have sunk 4 of the 7 steamers reported to be in the
Malta convoy; the other 3 probably entered Valletta. The German Air
Force is said to have scored the main success against the enemy, in
spite of difficult weather conditions. An Italian aerial torpedo attack
probably destroyed a 3ritish cruiser and damaged other British ships.
(See Telegram 1350.)

It is not at all certain from the above reports that the
Malta convoy consisted of 7 steamers. The report to
this effect by German air reconnaissance was not confirmed
by photo reconnaissance, as the German Naval Command

- 240 -

24 Mar. 1942 CONFIDENTIAL

itself reported on 23 Mar. Thus it will be very diffi-
cult to get an exact picture of the degree of success
achieved by the two Air Forces, unless it is possible to
procure reliable data on the size of the enemy convoy.

The German Naval Command, Italy transmits via Telegram 2001 a preliminary
report of the Italian cruiser commander, Admiral Parona, on the engage-
ment with the Malta convoy on 22 Mar. According to this report the 3
Italian cruisers (2 heavy and one light) sighted 5 light British cruisers
in 2 groups, and behind them 5 or 6 steamers with destroyer escort; the
Italian force turned on the group of the 2 PENELOPE -class cruisers for
a running engagement at a distance of 2000 meters on a 250° course.
Shortly after they opened fire the Fleet Commander on the LITT0RI0 gave
the order for the ships to assemble around the LITT0RIC. Thus the en-
gagement was broken off, without utilizing the situation, which accord-
ing to information thus far available the Naval Staff considers as hav-
ing been exceptionally favorable. The German Naval Command, Italy is
of a different opinion, believing that an engagement of the Italian
cruisers with the British escort forces was tactically not particularly
wise, but the Naval Staff does not necessarily share this view. No
final decision can be made, however, until all circumstances, particu-
larly the unusual weather situation, become known.

Enemy planes attacked Benghazi in the night, of 23 Mar., but caused no
damage.

The final report of the Commanding General, Armed Forces, South concern-
ing the operation against the Malta convoy on 22 and 23 Mar. contains
the following information:

German successes : Sunk: 1 steamer of 5>000 tons, 2 steamers of 6,000
tons each. Damaged! 15 steamers of unknown tonnage, 2 steamers of
4,000 tons each, 3 cruisers and 2 destroyers.

Italian successes : Sunk : 1 steamer of 10,000 tons, 1 steamer of un-
known tonnage, 1 cruiser, J destroyer. Damaged : 4 cruisers, 2 de-
stroyers, 1 steamer of 8,000 tons.

It is hard to tell to what extent there is overlapping in this report.
Although unfortunately it was not possible, especially for the Italian
naval forces, to destroy the steamers and the escorting cruisers com-
pletely, this convoy doubtless cost the enemy considerable losses, which
can be ascribed to the valiant efforts of the Axis air forces.

3. Own Situation :

The 3rd PT Boat Flotilla did not operate because of the
weather. The 4 damaged vessels of the 6th Motor Minesweeper Flotilla
will have been repaired by 25 Mar. and 12 Apr.

4. Transport of Supplies to North Africa :

The supply traffic came to a standstill because of the enemy
situation and the weather.

5. Area Naval Group South :
Aegean Sea :

Own Situation :

The Greek destroyer n ZG 3 W was commissioned on 22 Mar.

- 241 -

2k Mar. 19^2

CONFIDENTIAL

On 23 Mar. in the evening enemy planes attacked targets in the Athens
area and on Crete. No damage has been reported. There was no convoy
traffic because of the weather.

Black Sea ;

Air Commander South reported that during an air attack on
Tuapse 1 enemy destroyer and 1 steamer suffered direct hits; also 1
submarine was sunk for sure and another one definitely damaged.

Otherwise no special incidents.

6. Situation France ;

The sinking of the French steamer MARCELLE by a British sub-
marine shows that the question of escorts for French merchant ships must
finally be settled.

For instructions to this effect to the German Naval Command, Italy see
War Diary, Part C, Vol. VIII.

VIII. Situation East Asia

Domei published the announcement of the Japanese Navy concerning revision
of the rules for naval warfare from the year 191^ on the basis of ex-
perience with enemy methods. See supplement to Foreign Press Report
No. 70 of the Naval Staff Intelligence Division, Foreign Press Branch
for a detailed report.

No special reports on the war situation.

IX. Army Situation

1. Russian Front ;

Southern Army Group ;

The enemy launched new attacks along the entire Feodosiya
front, but was unsuccessful. According to prisoner of war statements,
it is likely that attacks will be renewed against the bridgehead at
Taganrog. Enemy attacks east and west of Slavyansk and against the
Rumanian positions in the Ternovka valley were repulsed. At Bishkin
a German advance succeeded. West of Balakleya the enemy evidently put
a bridge across the Donets, which indicates that further attacks are
imminent. A surprise advance by German panzer forces south of Vol-
chansk pushed the enemy back across the Donets. Several villages were
taken.

Central Army Group ;

The enemy succeeded in entering Yelnya from the south. A
counterattack is in progress. The pocket southeast of Vyazma was fur-
ther tightened. Enemy attacks at Yukhnov, northwest of Rzhev, and
south of Velizh were smashed.

Northern Army Group ;

So far the enemy has attacked the positions at Pustinya JO

r- 242 -

24 Mar. 1942 CONFIDENTIAL

times without success. The Von Seydlitz Group, in stubborn fighting,
gained additional territory to the east south of Staraya Russa. A de-
fense front was established at the southern flank of the advance. The
Redsha sector was crossed on a broad front. The enemy is exerting heavy
pressure on the new positions west of Yamno. We were able to close off
the point of penetration at Maluksa to the south and west. Other at-
tacks at the point of penetration as well as southeast of Schluesselburg
were repulsed.

2. Finnish and Norwegian Front :

Situation unchanged.

' 5. North Africa :

Little scouting activity on both sides because of a heavy
sandstorm. The major part of the German Africa Corps was transferred
east of Mbaua (45 km. south of Derna).

*«**#*********•*****#*«««

- 24J -

CONFIDENTIAL
25 Mar. 19^2

Items of Political Importance

France:

General Weygand made a statement to an officer of a neutral country
about the political situation. He termed the idea absurd that there
would soon be close cooperation between Germany and France. He said
that the German armed forces are the strongest in the world, led in a
masterly fashion, and are invincible at the present time. There is no
doubt that Germany will be victorious over Russia, and that Russia will
be beaten completely in the course of the summer. Britain is already
beaten for all practical purposes. The U.S. will have to realize that
it is impossible to bring up and supply an army over such long and
dangerous distances, and they will have to come to an understanding
with Germany. He is spiteful toward Darlan and bitter toward Petain.

Great Britain :

In the House of Commons Minister Anderson gave a survey about the re-
organization of the invasion defenses. Production Minister Lyttleton
announced that a war production staff has been created, which is to
handle especially deliveries to the Allies, and is subordinate to the
defense committee. He stated that Beaverbrook's mission in the U.S.
is very important.

India:

The leader of the Moslems stated that the Moslems in India are not a
minority but a nation. Until their dying breath they will oppose any
intrigues of the British and Hindus to put them under Hindu control.

Sweden :

All information received lately tends to confirm that Sweden is ser-
iously planning to oppose any aggressor. While heretofore mainly the
danger threatening from Germany was stressed in this connection, now
the Anglo-American threat is being given greater prominence, and a
landing in Murmansk on a larger scale will be Interpreted as an attack
on Sweden. This in no way changes Sweden's opposition to Quisling.

Hungary :

For the time being the government will refrain from reacting to the
severe attacks on the part of Rumania. According to international
press reports, Hungary expects the Axis powers to intervene because of
the seriousness of the case.

U.S.A. :

Willkle openly advocated admitting Negroes into the U.S. Navy.

Conference on the Situation with the Chief. Naval Staff

I. The Chief, Naval Staff Quartermaster Division reports about the
transfer of cruiser THETIS as antiaircraft vessel to Norway. She will
be transferred under her own power after the necessary short repairs.

- 244 -

25 Mar. 1942 CONFIDENTIAL

II. The Chief, Naval Construction Division reports about the necessity
of deciding at once whether construction of warships which has already-
been started should be continued or stopped in view of the cut in scarce
raw materials during the second quarter of 1942. A proposal in this
matter by the Naval Construction Division is being examined by the
Naval Staff Quartermaster Division and the Operations Division, and will
soon be submitted to the Chief, Naval Staff for a decision. According
to this proposal, repair and rearmament of the GNEISENAU is to be con-
tinued and the GRAF ZEPPELIN completed. Likewise there is no doubt
about the completion of 18 submarines per month - with the reservation
that if certain special types of submarines require a particularly large
amount of scarce metals this figure cannot be reached in some months.

The decision concerning continuation of construction of destroyers and
torpedo boats presents difficulties. The original plan was to complete
6 destroyers and 12 torpedo boats a year; this was reduced in the plan
of the Naval Staff Quartermaster Division to 4 destroyers and 6 torpedo
boats. In view of the shortage of light naval forces, it is unnecessary
to state that in principle as many such ships must be built as possible.
Since one "56a" destroyer needs as much copper as 2 "39" torpedo boats,
14 torpedo boats could be built if construction of the destroyers were
discontinued. The tasks to be performed by the light naval forces are:

a. Reconnaissance and escort during large-scale operations of
battleships and cruisers.

b. Escort for aircraft carrier.

c. Independent operations.

d. Patrol of coastal areas.

With this in mind, the Naval Staff Operations Division has come to the
conclusion that tasks c and d could be carried out by either destroyers
or torpedo boats, but tasks a and b only by destroyers. Therefore con-
struction of the destroyers cannot be abandoned. Likewise the Naval
Staff believes that torpedo boat construction should not be curtailed
in favor of destroyers, and believes it advisable to approve the ratio
of 4 to 6 as suggested in the curtailed program. Consequently the
Chief, Naval Staff will suggest that the destroyers and torpedo boats
now under ponstruction be completed in the ratio of 4 to 6. As regards
future construction of light naval forces, the Naval Construction Di-
vision, in order to simplify construction and save labor and material,
has suggested that destroyer construction be abandoned in favor of the
"41" fleet torpedo boat. The Naval Staff believes that in view of the
emergency situation destroyer construction can be abandoned in the
future as here suggested only if the fleet torpedo boat "39" proves it-
self in operational use.

The Naval Staff cannot agree to the further suggestion of the Naval
Construction Division that the tasks of the "4l" escort vessels be
undertaken by minelayers or subchasers, as these vessels do not have
the speed necessary. The Naval Staff agrees, however, that at first
only 4 "4l" escort vessels be built, in order to keep some facilities
for the minelayer program (type M 40).

This suggestion will also be submitted to the Chief, Naval Staff for
his decision. For copy see Ski Qu A I a 880 Gkdos. and K/Stb 279/42
Gkdos. in War Diary, Part B, Vol. V.

III. At the request of the Chief, Naval Staff, the Chief, Naval Staff
Quartermaster Division reports about the suggestion of the SCEARNHORST

- 245 -

25 Mar. 1942 CONFIDENTIA L

command that the original fir© control system of the antiaircraft firing
equipment be fully repaired during the present repair period. Since it
will be necessary to pierce the bulkheads, it is feared that this might
create considerable difficulties while the ship is in dock, in case she.
should be damaged below the water line in an aerial attack (the dock can-
not be raised if the ship should become too heavy due to flooding the com-
partments IV to XIV); nevertheless, the Chief, Naval Staff Quartermaster
Division approved this request. The Chief, Naval Staff will not recall
this approval.

IV. The Chief, Naval Ordnance Division reports on a conference of the
chiefs of the Ordnance Divisions of the branches of the Armed Forces
with Minister Speer. The conference concerned the Fuehrer directives
about simplification of the communications system (Deputy Schmeer),
simplification of administration of quotas, appointment of a deputy for
labor (Gauleiter Sauckel), creation of a central agency in charge of
transport and shipment, and appointment of an Air Force engine special-
ist for the Navy, etc.

V. The Chief, Naval Staff Submarine Division reports that the first
transport submarine (submarine tanker) was reported completed today.
The next one will be ready the beginning of May, and the third and
fourth in August.

VI. The Naval Staff Operations Division, Foreign Affairs Section re-
ports about difficulties in the Armistice Commission, France concerning
payment for the French guns bought in Tunis for the German Africa Corps.
This might possibly have ill effects on our efforts to obtain permission
for German PT boats to proceed through France into the Mediterranean.
For details see War Diary, Part C, Vol. VIII.

VII. The Chief, Operations Branch, Naval Staff Operations Division re-
ports that according to the Deputy Chief, Group South the Rumanian
government refused to carry out the mining operation off Cape Kherson.
Group South believes that it is useless to broach the matter once more.
For a copy of Antonescu's communication, which attempts to explain the
refusal, see the annex to l/Skl 650/42 Gkdos. Chefs, in War Diary, Part
C, Vol. XlVa.

VIII. The Operations Branch, Naval Staff Operations Division reports on
the account given by the Naval Liaison Officer at the Army High Command
concerning the conferences with the Northern Army Group and the 18th
Army Headquarters, in accordance with orders of the Chief of the General
Staff. The following questions were discussed:

a. Whether cooperation with the Navy is assured.

b. What preparations the Navy has made to defend the islands af-
ter they have been captured.

Together with this report a telegram was received from the Operations
Staff, Army that capture of the islands in the Gulf of Finland by parts
of the 18th Army has to be delayed once more, since these forces are
needed urgently elsewhere at the present time.

The Chief, Operations Branch also reports that the Armed Forces High
Command Operations Staff has asked the Liaison Staff, North to inform
Field Marshal Mannerheim that the German operations against the islands
in the Gulf of Finland will be postponed, but to express the expectation
that the Finnish part of the operation will be carried out on schedule,
and that the German air support will be available for this purpose.

- 246 -

25 Mar. 19^2 CONFIDKNTIAL

IX. The Chief, Operation* Branch reports on the Fuehrer directive con-
cerning measures to be taken in case the enemy should land in Brittany.
All command staffs in the coastal area are to take up their command
posts at once.

The Chief, Naval Staff orders similar measures for the Navy.

X. The Chief, Operations Branch reports on operations by submarines in
the northern area against convoy PQ 1? reported there, as directed by
the Admiral, Arctic Ocean. See l/Skl 697 V 2 ^ Gkdos. in War Diary, Part
C, Vol. IV.

He also reports on the surprise operations by 4 or 5 submarines of the
Commander, Submarines, Italy in the eastern Mediterranean during the
new moon period in April, as suggested by the German Naval Command,
Italy. Plans are as follows:

(a) One submarine is to make a torpedo attack on the Haifa road-
stead, &nd one on the Beirut roadstead.

(b) Subsequently the Beirut roadstead and the route to Haifa are
to be mined.

(c) One submarine is to reconnoiter the main harbors on Cyprus.

Torpedoes or mines are to be used in Famagusta, Larnaka or Limasol,
depending on the situation.

(d) One submarine is to lay mines on the approach route to Port
Said.

(e) One boat is to be kept in reserve, possibly to reconnoiter
the roadsteads of Jaffa or Tripoli.

(f) After the above 5 operations have been carried out, all of
the submarines involved are to operate for a short period along the
shipping routes in the eastern Mediterranean.

The German Naval Command, Italy believes that the planned operation is
promising if carried out as a surprise move, thus justifying withdraw-
ing the submarines from their previous operations areas. Their appearance
in the eastern Mediterranean will relieve pressure on the Tobruk convoys .

The Naval Staff is definitely in favor of the operation. The Chief,
Naval Staff agrees.

XI. According to a report by the Naval Liaison Officer to the Armed
Forces High Command, the Fuehrer has rejected the suggestion that
Spitsbergen be captured. The Naval Staff does not know who made the
suggestion.

XII. The Chief, Naval Staff gave orders that the Air Force be requested
to make available suitable mine sweeping planes. The Naval Staff has
broached this matter to the Commander in Chief, Air (see War Diary

22 Mar.). If necessary the Chief, Naval Staff will discuss the matter
with the Fuehrer.

XIII. According to a report from the German Naval Command, Italy, the
Italian Navy needs considerably more Diesel oil than before, as motor
ships are being used to replace the lost steamers. The amount used in
December was 7,000 tons, in January 10,000 tons, and in February
7,000 tons. The total Italian supply at present is 60,000 tons, of

- 247 -

: ■ IA1

11, OCX tons

- s e 1 c i 1 re .

ltuatlo g 25 Mar. :.- -:
[. Ln Foreir ers

1. -r.eny Sit uatior. :

ng to an Italiac :•;

"bound c envoy in the t of the

Eone Fleet and Gibraltar ani es.

The Kaval Attache, Buenos -_res re to replace

Intish ships patrolling the . American eas t :~:rces,

sort for Uruguayan shlpa to the 7.5. is tc is I

by the British, to Pernanl Lllana, cr.z froa tr.ere oi

the U.S. Wavy.

Pacific Ccean :

.2 Military Attache at Santiago states that '=.: ag to

press reports net vet confirmed, U.S. ccastal artillery Hlth training
personnel, sc: -rs, and tasks have beer, landed in A--. :f ar=s:= ,
Tocopilla, San Antonio, and Chanaral, allegedly to protect . inter-
ests in Chile. It is said that large U.S. var materiel iu^rs are :el-;
established in the nining area of northern Chile.

2. Ovn Situation :

Ir.frrmatic -t the er.ez.- situation is sent in Radiograms
0207, 0634, 1417, 1500, and 2017.

". Situation Vest Area

1. .-tlar.ti:: Coast :

6 ground mines were removed off Lorient.

2. Channel Coast :

e 2nd and 4th PT Boat Flotillas laid nines along the south-
east coast. During enemy incursions in the night of 1* Mar. mine
detonating vessel 136" shct dovn 1 enemy plane. Enemy planes attacked

le Havre shipyard in the night of 25 Mar., and caused sore slight
damage. In Paris propaganda leaflets vere dropped, but no bombs.

III. Worth Sea, Norvay, Arctic Ocean

- 248 -

25 Mar. 1942 CONFIDENTIAL

1. North Sea ;

Enemy Situation !

According to a report bv a British plane, there were 1 battle-
ship, 1 cruiser, and 1 destroyer oO miles east of Firth of Tay. Our air
reconnaissance reports normal convoy activity off the east coast. Ac-
cording to an agent report, there are 140,000 to 160,000 GRT of ships
assembled in Moray Firth for use as transports to Russia. They are to
leave about 26 Mar. They will be met in the Barents Sea by 10 Russian
submarines.

Own Situation ;

Convoy tasks according to plan. Enemy planes strafed 2 har-
bor patrol vessels at Hook of Holland, causing a few casualties. Lively
enemy air activity over the Dutch area in the night of 25 Mar. No
damage has been reported.

Group North supports the request of Station North to lay mine barrages
between the islands Walcheren and Beer outside the fishing areas es-
tablished there, in order to make enemy landing attempts and illegal
traffic more difficult. The same measure is requested for Eierland Gat
between Texel and Vlieland.

The Naval Staff believes that it is Improbable that the enemy will es-
tablish beachheads on islands in the river delta which have no connec-
tion with the mainland, and that therefore it is unnecessary and Inad-
visable to mine these areas since this would Interfere with our own
movements. For the same reasons the former Dutch minefields in this
area were removed with great difficulty.

The Naval Staff leaves the decision up to Group North, informing the
Group of its opinion and pointing out that Station North itself con-
siders the approaches between Voorne, Overflakke, Schouwen, and Wal-
cheren as of no great military Importance.

2. Norway ;

Enemy Situation ;

Nothing to report.

Own Situation ;

On 24 Mar. 3 vessels of the 5th Motor Mine Sweeper Flotilla
and the steamer SKRAMSTADT transferred from Trondheim to Tromsoe. and
the 8th Destroyer Flotilla with destroyers Z "24", "25", and "26*
transferred from Trondheim to the north. On 25 Mar. the 0STMARK and 3
minesweepers left Stavanger for Bergen, and the 12th Subchaser Flotilla,
with 9 vessels, torpedo boat T "17", and 4 vessels of the 56th Mine-
sweeper Flotilla left Stavanger for the south. Minesweepers M "1501"^
and "1507" left Kirkenes for the Kongs Fjord with soldiers, equipment,
and ammunition aboard.

See Submarine Warfare for orders issued by the Admiral, Arctic Ocean
for submarines to operate against convoy PQ 13.

See Telegram 1312 for Group North's communication to the 5th Air Force,
pointing out that in view of the large area submarine and destroyer op-
erations against the important northern convoys can be successful only
if air reconnaissance provides the essential information, which must

- 249 -

>iar. : :

include not only reports about, convoys, but also about
--"--ne, ani about Ice con:.- as.

Mttntarj to lta suggestion to the Naval 3tn:':~ i-

:iou. Shipping an: Z?-- -.2':., that :r.::; be trail

aorrl-.era Norway, Gro- 3 out in vi f possible objection!

that the trrops might be diss Ln Kristlansand South, I

by rail to Trondhelm, and there ree-'zarked on t. i had

been up vltta their squipannt. Telegram 12::.j

It depends primarily on the railroad situation in Nor
whether this can be carried out.

IV. Skagerrak, Baltic Sea Entrances, Balti: 3ea

1 . Enes y Situa ti on:

There is still no definite irf: an concerning the state
of readiness of the Norwegian ships ln Swedish harbors. In view of
prevailing conditions (the ice situation, the extent of the har'cor and
the intervening coastal Islands) direct observation and preve
meas m islble. I ;e it la unlikely that

ships cs Goeteborg through the coastal island ;ey will have
to stay In the channel that has been broken throug l^e.

2. Own Situation :

Information Is sent to Group North concerning the .on of
the Naval Staff; It Is suggestei that the Group conaicer stationing a
patrol line outside of Swedish territorial waters »ff Vlnga along the
departure route of the Goeteborg navigational channel. See l/Skl I
Nord 6934/42 Gkdos. in War Diary, Part B, Vol. III.

Otherwise nothing to report.

Y. Sutiarir.e Warfare

1. Zneaiy Situation :

According to the radio Interceot service, convcr 2 : 76 was
at 44° 15' N, 63° 00' ¥ at 2200 on 24 Mar. It changed course at 61°
JO 1

There was lively reconnaissance by planes of the l$th and 19th Groups.

An SSS signal was intercepted from steamer EMPIRE ?i:r approximately
miles southeast of Cape Sable on the American east coast. 2 ships were
sent to the rescue. After 2 hours the 3teamer reported that she opened

re. 75 miles southeast of Cape Sable the Dutch steamer OCEAHA
(6,256 GRT) was chased by a submarine. The British motor tanker
HARRAGAHSETT (10,389 GRT) was torpedoed 200 miles northwest of Bermuda.

2. Own Situation :

A second submarine established contact with the convoy east
of Cape Race in the morning, and maintained it during the day. Then

- 250 -

25 Mar. 1942 CONFIDENTIAL

the submarine was forced off by destroyers. The first submarine sank 1
9,000 GRT tanker and 1 8 f 000 GRT steamer of this convoy and then con-
tinued her return voyage. A submarine operating in the Cape Hatteras
area sank 1 tanker of the BRITISH FIDELITY class (8,445 GRT) on 17 Mar.
on her way to the operations area, and steamer 0AKMAR (5,766 GRT) west
of there on 20 Mar.

t

U "68" in the South Atlantic sighted a convoy on a 20© course, consist-
ing of 5 steamers and 3 escort vessels, about 60 miles south of the
Gold Coast. While making an underwater attack, the submarine was sighted
by a land-based plane, forced off, and pursued with depth charges for
5 hours by the plane and the escort vessels.

For further reports see War Diary, Part B, Vol. V.

The Commanding Admiral, Submarines informs the Naval Staff via Telegram
1005 that the York group is being relieved by submarines U "703", "702",
"657", and "334".

In order to intercept convoy PQ 13, the Admiral, Arctic Ocean has
ordered the submarines to take up the following positions:

U"435" during the day in quadrant 8822, at night 8828

U "589" during the day in quadrant 8823, at night 8837

U "454" during the day in quadrant 8914,. at night 8862

U "585" during the day in quadrant 8945, at night 8868 .lower right.

All of these are in quadrant AC. If PQ 13 is located earlier, the sub-
marines are to operate within the area under the Admiral, Arctic Ocean.
(See Telegram 0010.)

On the basis of the latest information, Group North gathers that some
of the PQ convoys sail east through the Denmark Strait and along the
ice border toward the southeastern tip of Jan Mayen. The Group there-
fore asks the Commanding Admiral, Submarines that the submarines going
out into the Atlantic to relieve the York group be sent along the
route through the Denmark Strait which the Murmansk convoys evidently
follow, so that if necessary the Group can order these submarines to
attack the convoy. (See Telegram 2032.)

Since it was impossible to obtain any appreciable Increase in the raw
material allocation for the Navy, a large cut in submarine production
will soon be unavoidable.

In this connection the Naval Staff Submarine Division informs the
Naval Construction Division that since further cuts in the production
of C VII submarines must be avoided, the last 4 X B submarines will have
to be delayed considerably. The Submarine Division, however, asks the
Construction Division to make every effort to utilize any improvement
in the submarine construction situation to speed up the X B boats.

VI. Aerial Warfare

1. British Isles and Vicinity :

On 24 Mar. during the day 172 planes of the 3rd Air Force,
mostly fighters, were in operation. 4 enemy planes were shot down.

During the night 19 German planes attacked PT boat berths in Dover, and

- 251 -

25 Mar. 1942 CONFIDENTIAL

12 flew armed reconnaissance missions. 56 enemy planes attacked area3
in Germany from the North Sea coast to Trier, Mannheim, Nuernberg, with-
out concentrating on any particular locality. 8 planes were shot down.

2. Mediterranean Theater ;

According to a report from the Commanding General, Armed
Forces, South, a large number of bombers successfully attacked ships
in Valletta and Marsa Scirocco. In Valletta 2 merchant ships were hit,
and in Marsa Scirocco several patrol vessels. Ill fighters flying
escort and free-lance missions did not contact the enemy.

Reconnaissance in the Malta area was incomplete because of the weather.

3 . Eastern From :

No specia.1 reports have been received from the Army front.
Lately, as already for Bone time, losses have been in a ratio of 1
German to from 5 to 10 eneny planes. On 25 Mar. the ratio was 5 to 34
planes.

It was reported that during the attack on the harbor of Murmansk carried
out en 23 Mar., 3 more hits were scored on steamers which were unloading

It was also reported that during the attack on Tuapse on 23 Mar. addi-
tional hits were scored on 1 destroyer and 1 steamer. No report has as
yet been received about the results of the attack made on Tuapse on 24
Mar. On 24 Mar. 1 tanker of 6,000 GRT was seen grounded southwest of
Tuapse in the morning, and in the afternoon 1 steamer and 2 escort ves-
sels northwest of the town. The reason is unknown.

VII. Mediterranean Warfare

1. Enemy Situation ;

No important change in the ships in Gibraltar. 91 planes
were seen.

In the Malta area the steamer sighted half-sunk on 24 Mar. off Marsa
Scala was located in tow and escorted by 2 ships headed for Valletta.

According to the British Admiralty report concerning the attack on the
convoy on 22 to 24 Mar., 2 British naval vessels under Admiral Vian en-
gaged the Italian cruiser group the afternoon of 22 Mar. Details are
still lacking, but the enemy was driven off without damage to British
vessels. During another attempt to destroy the convoy that same after-
noon, the Italian naval forces included at least 1 battleship. The
British naval forces launched a torpedo attack during the day, and 1
Italian battleship was seen to be hit by at least 1 torpedo. There-
after the Italian forces withdrew and made no further attempt to dis-
rupt the convoy. A bad storm delayed the arrival of the convoy in
Malta, and made it possible for the enemy air forces to launch a series
of heavy attacks in the course of 23 Mar., which did not succeed in pre-
venting the most important supplies from reaching Malta. 1 merchant
vessel was sunk by air attack. Additional details are still outstand-
ing.

Radio intelligence intercepted an urgent message from an unidentified
British ship approximately 40 miles south- southwest of Malta.

- 252 -

25 Mar. 1942 CONFIDENTIAL

Submarines were located south of Leucas, 45 miles southeast of Pola,
15 miles southwest of Taranto, and 15 miles south-southeast of Cape
Passero. 7 destroyers, escort vessels, and evidently 1 or several con-
voys were in coastal waters between Tobruk and Sidi Barani. One of the
convoys was sighted in the night of 25 Mar. by a German submarine about
10 miles from the coast between Marsa Matruh and Sidi Barani.

2. Own Situation ;

4 vessels of the 3rd PT Boat Flotilla were ordered to launch
a torpedo attack on the steamer reported stranded near Marsa Scala. The
vessels were to be in the latitude of Malta before the moon goes down.
(See Telegram 1145.)

Since the steamer arrived at her destination, the opera-
tion was evidently not successful. No report has as yet
been received.

3. Situation Italy :

The search for destroyers LANCIERE and GRECALE was unsuccess-
ful up to 1250. At that time the German Naval Command, Italy gave the
following extract from the Italian battle report of 1100 on 24 Mar.:

"The engagement of 22 Mar. begun at 1640 lasted about 2 hours with in-
terruptions. The LITT0RI0 fired 175 rounds of 38. 1 cm. caliber and
about 400 rounds of 15.2 caliber. The cruisers GORIZIA and TRENTC to-
gether fired approximately 570 rounds of 20.3 caliber. The visibility,
which was constantly getting worse, along with heavy smoke screens,
complicated the operation, and prevented decisive resfults, although at
times the enemy cruisers were only 1000 meters away. During the first
part of the battle 2 British cruisers were hit, one of them seriously;
also 2 destroyers were hit during the destroyer attack at sundown. At
this time the destroyers were as close as 600 meters to the LITT0RI0,
and fired their torpedoes, which it was possible to evade. One missile
of medium caliber hit the LITT0RI0, but the damage was negligible.

All destroyers which took part in the operation are temporarily out of
commission because of damage caused by the heavy seas. Therefore oper-
ation S 5 (evidently a mining operation in the Strait of Sicily) must
be postponed. "

The account of the engagement confirms the British Ad-
miralty report that British destroyers made daylight at-
tacks on the heavy Italian ships, and not one of the
attacking vessels was sunk in spite of the very consid-
erable amount of ammunition expended. The British claim
that a torpedo hit the battleship is probably as incor-
rect as the Italian claim that British cruisers and
destroyers were hit by gunfire. It is understandable
that the heavy Italian ships broke off the engagement
for the night considering the time of day and the danger
from the destroyers. In any case the report is not
detailed enough to permit any definite conclusions.

According to additional reports, enemy torpedo planes unsuccessfully
attacked the destroyer F0LG0R0 at 0403 south of Cape Spartivento. A
plane and a torpedo boat chased an enemy submarine off Brindisi the
evening of 24 Mar., probably at least damaging the submarine.

4. Transport of Supplies to North Africa :

Supply traffic has been halted by the weather. According to

- 253 -

25 Mar. 19^2 CONFIDENTIAL

the Shipping end Transport Office, Eenghazi, the Maria Eugenia pier was
completed on 2^ Mar.

*
The 6th transport group (Lupo), escorted by cruisers and destroyers, is
to leave on 26 Mar.

5. Area Naval Group South ;

Aegean Sea ;

Nothing to report.

Elack Sea ;

Enemy Situation ;

According to sighting reports, there was a large number of
ps In the harbor of Kerch. Air reconnaissance located 6 PT boats
which had left Sevastopol south of Balaklava on westerly course on 24
Mar., and simultaneously (1530) reported 2 submarines neap Capo Kherson
on southwesterly course. In the morning there were 3 destroyers on
southerly course southwest of Sevastopol, and in the afternoon 1 de-
stroyer on southeasterly course.

Own Situation ;

Nothing to report.

VIII. Situation East Asia

1. Enemy Situation ;

The U.S. Navy Department announces the loss of destroyers
PILLSBURY and EDSALL during the naval battle in the Java Sea.

2. Situation Japan ;

According to the Military Attache at Bangkok there was little
fighting on the Burma front on 23 Mar. The Japanese launched heavy air
attacks on Port Darwin and smaller harbors on the east coast of Austra-
lia. On New Guinea there is said to be unrest among the natives.

IX. Army Situation

1. Russian Front ;

Southern Army Group ;

Heavy enemy attacks supported by tanks launched on our po-
sitions east, north, and west of Slavyansk were repulsed or smashed.

A German counterattack reached as far as northwest of Sal to in the
sector of the 6th Army. North of there our tank advance against strong
enemy tank attacks made slow progress.

- 254 -

25 Mar. 1Q42 CONFIDENTIAL

Central Army Group ;

•

Local fighting in the area of the 2nd Panzer Army vith vary-
ing outcome. In the front sector of the 4th Army there was fighting
at Demenskoye around the highway and in the area of Yukhnov. In the
rear area the enemy penetrated into Yelnya. The situation is critical.
Enemy attacks were repulsed at Vyazma and northeast of Gzhatsk. At the
northern front of the Army strong enemy attacks with tanks and reinforce-
ments are in progress against the former penetration point. A tank
attack south of Velizh was repulsed.

Northern Army Group ;

"Lively fighting in the Kholm area. South of Demyansk an attack
by parts of 2 Russian paratroop battalions was repulsed. Through
seizure of the Redvya sector the main supply route of the enemy has been
blocked. The forward positions of the Von Seydlitz Group have been re-
inforced. Several villages were captured in the northern sector of the
Redvya position. Enemy attacks were repulsed south of Maluksa.

2. Finnish and Norwegian Front ;

South of Suursaari in the Gulf of Finland small groups of
enemy vessels were sighted en route south, evidently carrying reinforce-
ments for the islands. Lively scouting activity at the southeastern
and northeastern Finnish front.

3. North Africa ;
Nothing to report.

*«**#**##«#***«***«*««*««

- 255 -

CONFIDENTIAL

26 Mar. 19^2

•

Items of Political Importance

Great Britain ;

A representative of the Labour Farty stated in a debate in the House of
Commons that the enthusiasm vhich increased production in the factories
at the time of the German attack on Russia has diminished greatly. Pro-
duction Minister Lyttleton declared that 60% of the national income
goes to the government, and that this will increase to 70% in the future .
He said that it is quite evident that the remaining 30% is not sufficient
to provide comforts for the civilians.

The House of Lords discussed appointing a committee to investigate the
loss of Singapore. The surrender of 80,000 British soldiers is doutt-
less the greatest defeat Britain has ever suffered. Several of the
speakers demanded that the post of Defense Minister be abolished; in
other words they directly attacked Churchill.

Complaints are increasing that the materiel and personnel resources of
the British economy are being insufficiently utilized.

The coal supply situation is deteriorating more and more. Withdrawal
and transfer of skilled workers is having very bad results. The steve-
dores are accomplishing only two thirds, of what they used to. As a
consequence of wage raises *4, 000 stevedores in Liverpool did not appear
at all for 11 half-day shifts between the beginning and the middle of
February.

Cripps' trip to India via the African route (via Lagos) shows the im-
portance of this route between England and the Mediterranean. According
to the Transocean News Agency the British are making every effort to
Improve this route by expanding the airfields. At the same time trans-
port routes to Egypt via French Equatorial Africa are being speedily im-
proved. De Gaulle is trying to complete roads adequate for truck trans-
ports from Duala, Libreville and Port Gentil to Khartoum.

It is feared that German long-range bombers might attack the airfields.

Australia :

According to the Prime Minister, General MacArthur has been granted
very extensive powers. For the duration of the operations, the
Australian Air Force will be directly under the U.S. High Command.

Canada :

The Frime Minister reported that Canada will not send an expeditionary-
corps to Australia, and that furthermore Canada has requested represen-
tation on the Pacific War Council.

EgvjDt:

According to the Prime Minister Nahas, the Wafd Party won 216 out of
264 seats in Parliament during the elections.

U.S.S.R. :

On the occasion of decorating 4 British flyers with the Lenin order,
Malsky demanded once more in a lengthy speech that the Allies launch

- 256

26 Mar. 1942 CONFIDENTIAL

an immediate offensive. He said that the enemy is staking everything
on winning in 1942, and consequently the Allies have to do the same,
and throv in all their resources in the spring and summer of this year,
Only one thought must prevail: 1942 and not 1943J

Conference on the Situation with the Chief, Naval Staff

I. The Chief, Naval Staff Quartermaster Division reports that the di-
rective announced by the Naval Liaison Officer at the Armed Forces High
Command concerning unified command organization of the coastal defense
of all branches of the Armed Forces has now been issued; he suggests
that the directive be passed on to the naval offices with the necessary
explanations and supplementary instructions which safeguard the basic
views of the Navy. The Chief, Naval Staff agrees, and orders that
these instructions be submitted to him before being sent off. For copy
of Fuehrer directive see l/Skl 7296/42 Okdos. in War Diary, Part C,
Vol. X.

II. In view of the threat to districts near the coast due to enemy
raids, the Chief, Naval Staff issues strict orders that the naval com-
mands involved pull back their quarters from the coast. See l/Skl
7380/42 Gkdos. in War Diary, Part C, Vol. X.

III. The Chief, Operations Branch, Naval Staff Operations Division re-
ports that it is assumed that the DOGGERBANK successfully carried out
her mining operations; he also reports about the disposition of the
submarines. The Chief, Naval Staff asks that the Commanding Admiral,
Submarines be instructed once more to have submarines in the West Indies
at all times. Submarine "UA" carried out her first supply mission.

The Commanding Admiral, Submarines is planning to use the minelaying
submarines U 116" and "456" likewise for supply missions in the near
future, since the submarine mines (SMA) will not be available for some
time.

Special Items

I. The Army General Staff memorandum "Possibilities for Anglo-American
Operations against Europe and Africa in 1942", which is being analyzed
jointly by the Army General Staff, Intelligence Division East and the
Naval Staff Intelligence Division, has caused the Chief of Staff Armed
Forces High Command to inform the Army General Staff that it is necessary
previously to coordinate such analyses of possible enemy plans with the
opinion of the Fuehrer. Therefore the Operations Staff, Armed Forces
High Command should be consulted before such estimates are released.
The Armed Forces High Command does not entirely agree with the Army
memorandum, and states that the arctic and Norwegian coasts are already
now in 1942 greatly threatened by enemy landings. The memorandum is
not suitable for the Army High Commands in Norway and Lapland, since it
runs counter to the orders issued. The Armed Forces High Command will
release its estimate in the pending battle instructions for coastal
areas .

For copy of this communication, which was also sent to the Naval High
Command and the Commander in Chief, Air, see l/Skl 6562/42 Gkdos. in
War Diary, Part C, "Basic Problems of Warfare .

- 257 -

26 Mar. 1942 CONFIDENTIAL

For copy of the Army memorandum see report 632/42 Gkdos. Chefs., in War
Diary, Part C, "Basic Problems of Warfare".

II. The Naval Staff Quartermaster Division, Fleet Branch has submitted
the following statement:

A. Naval barges required:

1. For operational purposes:

In the East 54

In Norway 65

TIT

2. For planning by the Admiral,

Amphibious Forces (formation

of flotillas and training) 144

Total: 263

B. New vessels becoming available between February 1942 and
January 1943:

In Germany 306

Abroad and in Linz 63

Situation 26 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation :

According to a report from the Naval Attache, Madrid, 3ritish
circles there are talking about supposed concentrations of 3ritish and
American naval forces near the Canary Islands and on the African west
coast between 26 Mar. and 5 Apr. Whether this is true or whether these
are rumors purposely spread has not been determined.

According to Reuter a new contingent of Canadians, mostly air troops,
arrived in the British Isles.

According to the German Official News Agency (DNB) the U.S. is planning
to add to the U.S. Navy 2 battleships of the INTERNATIONALE class,
35,000 tons with 40.6 cm. guns, which the Soviet Navy ordered in 1938
and which were to have been delivered at the end of 1941.

This report must be investigated.

2. Own Situation :

No reports have been received from our ships in foreign
waters.

Radiograms 1645 and 2212 contain information on the enemy situation.

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26 Mar. 1942 CONFIDENTIAL

II. Situation West Area

1. Enemy Situation ;
Nothing to report.

2. Own Situation ;

Atlantic Coast ;

Enemy air raids on Brest, Lorient, and St. Nazaire during the
night of 25 Mar. Mines were probably dropped at Brest. In Lorient
and St. Nazaire the attacks concentrated on the shipyards.

According to the port commander of Bordeaux the harbor is overcrowded
and it was not possible to disperse the ships as ordered.

Instructions are issued to Group West and the Commanding Admiral, Sub-
marines to bring in the blockade- runner RIO GRANDE, which according to
dead reckoning might be at point "Rotfeder" on 4 Apr. and at Bordeaux
on 10 Apr. She is to be met by a submarine at point "Rotfeder". At
0000 on 4 Apr. (German official time) Group West will take over command.
Information is sent concerning the position of points "Rotfeder",
"Rotauge", and "Rossauge". For copy of telegrams see l/Skl 659 and
660/42 Gkdos. Chefs, in War Diary, Part C, Vol. I.

See l/Skl 7103/42 Gkdos. in War Diary, Part C, Vol. II b for report of
Group West concerning the new division of the subchase area along the
Atlantic coast which became effective on 16 Mar.

Channel Coast ;

In the afternoon of 25 Mar., enemy planes attacked the Le
Trait (Seine) shipyard. Some casualties and light damage resulted. On
the afternoon of 2o Mar. considerable numbers of enemy bombers with
fighter cover attacked Le Havre, coming from the south.- Several hits
were scored on military installations, causing slight damage; 2 mine-
sweepers were also hit. German fighters shot down 7 of the attacking
planes.

During the night of 25 Mar. the 4th PT Boat Flotilla carried out its
mining operation according to plan. The 2nd PT Boat Flotilla broke off
its operation because one of the vessels had engine failure. For brief
reports of the flotillas, see telegrams 1005 and 1100. The 2nd PT
Boat Flotilla will carry out its mission with 2 vessels during the night
of 26 Mar.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

During an air attack on the 13th Minesweeper Flotilla on
route "Blau" there were some casualties and damage. Minesweeping and
convoy operations in the area of the Commanding Admiral, Defenses,
North proceeded according to plan.

There was lively air activity over the Netherlands in the evening.
Bombs were dropped on Amsterdam and Vlaardingen. An air raid alarm
was sounded In Wilhelmshaven.

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26 Mar. 1942 CONFIDENTIAL

2. Norway :

Enemy Situation ;

Nothing to report.

Ovn Situation ;

Convoy operations proceeded according to plan. Mine ship
OSTMARK left Bergen to carry out mining operation "Krefeld" as part of
the repair of the Westwall barrage.

A convoy was attacked by enemy planes off Ryvarden. No details are
known as yet. The convoy continued on its way.

There is no proof that a torpedo sank steamer ULANDSHOERN. Since a
moored mine was found near Nurmansaettl, it is possible that a mine
caused the sinking.

The 8th Destroyer Flotilla has been ordered to proceed to Kirkenes at
once in order to operate against convoy PQ 13.

The Commanding Admiral, Norway reports after a thorough investigation
by the admirals of the coasts and the Intelligence Center, Norway that it
would be impractical and unpromising to use fishing vessels for patrol-
ling coastal waters as suggested. On the other hand the Commanding
Admiral, Norway is trying to provide J> whaling vessels during the whal-
ing period from the end of April to the end of July for the Tromsoe
and Aalesund areas, if replacements for patrol flotillas can be provided
from Germany.

For copy of telegram see l/Skl 7176/42 Gkdos. in War Diary, Part C,
Vol. II a.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation ;

According to a report from the consulate at Ooeteborg, on the
morning of 25 Mar. 7 Norwegian ships were seen at the entrance of the
harbor; 2 others could no longer be located.

The German captain of the steamer KUNGSBERG was stopped by the criminal
police on 25 Mar. when he entered the harbor section; he was not re-
leased until after 6 hours of questioning about his observations and
his reports to the German consulate.

Evening reconnaissance by the Commander, Naval Air in the eastern part
of the Skagerrak and the Kattegat along the border of the Swedish ter-
ritorial waters resulted in no observations of any kind as to the de-
parture of the Norwegian ships.

2. Own Situation ;

Skagerrak patrols according to plan without special incident.

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26 Mar. 19^2 CONFIDENTIAL

V, Submarine Warfare

1. Enemy Situation :

Several British vessels were observed In the sea area around
Porcupine Bank and Rockall Bank. The U.S. steamer CAROLYN (3,209 GRT)
reported 270 miles northeast of Cape Hatteras that she had a fire in the
bow and that the torpedo attacks were continuing. The U.S. steamer
HAMLIN P. McCORMICK sent an SSS signal about sighting a vessel with
suspicious lights near Cape Hatteras.

The Mexican Ministry of the Navy announced that the Vichy tanker MEROPE
was captured near Vera Cruz because it was suspected that she is being
used to supply Axis submarines. The suspicion was not confirmed, how-
ever.

2. Own Situation ;

Submarine U "701" reports gratifying successes from the sea
area east of Iceland. She sank a steamer along with the entire escort
of 1 escort vessel and 2 subchasers.

Contact was permanently lost with the convoy east of Cape Race. Opera-
tions against this convoy have been broken off.

In the Mediterranean submarine U "652" (Lt. Hamm) sank 1 tanker of 5,000
0RT and 1 destroyer from a convoy northeast of Solium Bay. Thus this
submarine has sunk 2 destroyers within a few days. Submarine U "205"
reports from the same area an attack on 1 tanker and 2 destroyers, with
a hit on the tanker, which probably sank.

The Commanding Admiral, Submarines cannot comply with the request of
Group North to direct the York group through the Denmark Strait, since
the submarines have already started on the return voyage to the French
bases, and the detour would be too great. However, U 252" will return
via this route; she has just completed the special mission of the
Armed Forces Intelligence Division (debarking men on Iceland).

For details see supplementary situation report in War Diary, Part B,
Vol. IV.

The Commander in Chief, Navy releases instructions once more to make
sure that the Caribbean Sea is patrolled at all times. See l/Skl I u
661/42 Gkdos. Chefs, in War Diary, Part C, Vol. IV.

VI, Aerial Warfare

1. British Isles and Vicinity :

See Situation West Area and North Sea for reports on enemy
air activity over northern France and the Netherlands. 25 of our planes
took off during the night of 26 Mar. for Sunderland. Other forces of
the Air Commander, Atlantic carried out armed reconnaissance.

Duisburg was the center of enemy attacks in Germany during the same
night. 2k enemy incursions were reported from Belgium and northern
France, and 11 from Norway.

2. Mediterranean Theater:

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26 Mar. 1942 CONFJDaM'IAL

The Commanding General, Armed Forces, South reports as follows :
Photo reconnaissance of Valletta at 1040 on 26 Mar. showed 2 cruisers of
the AURORA class, 5 destroyers, 4 submarines, 1 minelayer, 3 steamers,
one of them burning. Since 24 Mar. there are 1 cruiser, 2 destroyers,.
1 submarine, and 1 steamer fewer in the harbor. All day 71 Ju 88' s,
4 Ju 87' s, o fighter bombers, and 182 Me 109 'a attacked the harbors of
Valletta and Marsa Scirocco. All three of the merchant ships in the
harbor were hit during these attacks, one of them a troop transport, the
stern of which was submerged at 1700; at this time she received 3 fur-
ther direct hits. One of the other merchant ships was in flames in 4
different places. One cruiser received several direct hits, and a de-
stroyer was likewise hit. Numerous hits in oil storage tanks and antiair-
craft positions caused large fires.

The Air Commander Africa reports that on 26 Mar. at 0045 there were 2
steamers in Tobruk. At 1255, 12 Ju 87's attacked, escorted by J>6 Me
109' s; a direct hit was scored on a 3,000 ton freighter, causing vio-
lent explosions. The mole was hit by an SC 500 bomb.

During a renewed enemy attack on the German airfield at Mar tuba, which
was unsuccessful, another 3 enemy planes were shot down.

The Commanding General, Armed Forces, South further reports that air
traffic to Malta has increased during the past few days, and he con-
cludes that these are not purely ferrying missions, but also supply
transports .

3. Eastern Front ;

During the night of 25 Mar., 6 planes mined the harbor of
Sevastopol.

VII. Warfare in the Mediterranean

1. Enemy Situation :

For reports of photo reconnaissance of Malta see Aerial War-
fare, Mediterranean Theater.

A belated Italian photo reconnaissance report is available for Malta
for 24 Mar., 1300. According to this the cruisers AURORA and
COVENTRY were in the harbor, and the PENELOPE in dock; furthermore
there were 11 destroyers, 1 of them in dock, 5 submarines, 5 steamers,
one with stern submerged, also 1 harbor tanker, and auxiliary vessels.
■Thus at least 2. steamers must have left the harbor by 1040 on 26 Mar.
Disregarding the steamer located in Marsa Scirocco, it would thus ap- p
pear that at least 3 supply steamers reached their destination, unless
the 2 steamers located on 22 Mar. departed during the night of 22 Mar.
to return to the east. In this case as many as 5» and counting the one
in Marsa Scirocco 6, steamers carried out their supply operations.
Doubtless the steamers had already been unloaded to a large extent be-
fore the air attacks of 26 Mar. set in.

According to further Italian air reconnaissance reports, 5 steamers took

aboard large troop detachments in Alexandria between 5 and 8 Mar. For

details see Telegram 1300. These were probably Australian troops re-
turning home.

No other important reports from other Mediterranean sectors. A sup-

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26 Mar. 19^2 CONFIDENTIAL

plementary British Admiralty report states that on 22 Mar. 3 destroyers
and 1 cruiser suffered some damage and a few casualties, and on 23 Mar.
1 steamer of the convoy was sunk; 1 destroyer was hit but returned to
port.

2. Own Situation :

As was to be expected, the 3rd PT Boat Flotilla did not locate
the steamer reported near Marsa Scala. The mining operation of the flo-
tilla scheduled for the evening of 26 Mar. had to be postponed because
of the weather.

3. Situation Italy :

German Naval Command, Italy reported at 1930 concerning the
operation of the Italian naval forces against the Malta convoy on 22
Mar. as follows: "According to my information, the Italian Naval Staff
assumed that the Italian naval forces operating against the convoy
•would go through with the engagement with the purpose of destroying the
convoy. There is no reason to assume that the Italian Fleet Commander
on the LITT0RI0 had any other plans when undertaking the operation.
The fact that the mission was not carried out can be explained, in my
opinion, primarily by lack of tactical ability on the part of the
Italians, which in the face of a determined, experienced, and daring
opponent had a paralyzing effect on the Italian forces. I consider it
unwise to inquire about further details and explanations at the Italian
Naval High Command. Furthermore for the present the Italians w,Lll
probably not release any pertinent explanations concerning the tactical
behavior of their naval forces. However the operation of the Italian
forces at least succeeded in delaying the arrival of the convoy at
Malta, so that the German Air Force had further opportunity for success-
ful attacks on 23 Mar."

The Naval Staff has nothing to add to this analysis;
it might be pointed out that there is a discrepancy be-
tween this report and that made by the German Naval Com-
mand, Italy on 23 Mar., which termed the engagement be-
tween the Italian cruisers and the inferior enemy forces
during the first engagement as tactically unfortunate.
Participation by the LITT0RI0 group in an extensive
cruiser engagement in the early afternoon might have had
good results, not only as regards the enemy escort forces,
but especially thereafter as regards the steamers. These
would not have been able to escape after their escort
forces had been destroyed. It was certainly a mistake
to assemble and withdraw from the enemy.

The destroyer GRECALE, which had been reported missing, reached port.
Destroyers LANCIERE and SCIR0CC0 were lost; according to Italian re-
ports this was not due to enemy action but due to damage caused by the
heavy seas. There were few survivors.

4. Transport of Supplies to North Africa :

Traffic to Africa has not been resumed as yet due to the un-
certain enemy situation.

5. Area Naval Group South :
No special incidents.

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26 Mar. 1942 CONFIDENTIAL

VIII. Situation East Asia

1 • E nemy Situation i

According to U,S, :adio reports. Chinese troops repulsed a
Japanese landing attempt at N S*:*~ec.

The Andaman Islands have teen eapturoc. by the Japanese, according to
Reuter.

According to the radio intercept service, the WARSPITE is In west
Australian vater3.

According to an agent report it Is planned to ship 3 or 4 divisions from
the Gulf ports to New Zealand, where Christ Church, Dunedin, and Napier
have been put at the disposal of the U.S. armed forces. So far somewhat
less than 10,000 men have been shipped.

U.S. tankers from Tampico are faking on planes as deck cargo In Gulf
ports .

2. Situation Japan :

Nothing to report.

U. Army Siti^ation

1. Russian Front :

Southern Army Group :

Renewed enemy attacks on the Feodosiya front were unsuccessful
In the Von Kleist Army Group sector, enemy attacks were repulsed north
of Taganrog, near Yama, southeast of Barvenkovo, east of Kharkov, and
south cf Volchansk. The enemy suffered great losses.

Central Army Group :

Enemy forces unsuccessfully attacked near Sukhinichi,
Dememk:^, and Yukhnov. We have retaken Yelnya. Renewed enemy attacks
were £.130 launched on the other sectors of the eastern front, especially
along a wide front northeast of Gzhatsk and northwest of Rzhev.

Northern Army Group :

The road from Staraya Russa to the south has been cleared by
the Von Seydlltz group. Enemy pressure is continuing undiminished at
the penetration point north of Lake Ilmen and at Maluksa.

Nothing to report from the other Army fronts.

***«***«***«•«*** *** »#♦♦»

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CONFIDSM'IAL
27 Mar. 19^2

Itema of Political Importance

France:

According to a report from the German official news agency (DNB) from
Vichy, rumors are recurring constantly that the Riom trial will be ad-
journed or even dismissed. Particularly following the Fuehrer's remarks
on the matter it is assumed that the trial has reached a stalemate.

According to an official French report, the French government has not
given Washington new assurances concerning utilization of the French
fleet. The only naval matter discussed is said to have been the trans-
fer of the DUNKERQUE.. The government has made no commitments regarding
Madagascar, and as regards the Antilles it has stated that it must con-
tinue to observe strictest neutrality toward all belligerents.

Great Britain ;

On 26 Mar. Churchill presented a very dark picture of the situation to
the Conservative party. He depicted the capitulation of Singapore as
the greatest misfortune in the history of the British Army. He said
that after a temporary improvement the Atlantic situation has again
grown worse. Britain is engaged in a mortal struggle with 2 strongly
armed enemies, both of whom have been preaching war for years. In
spite of this Churchill stated that the situation has immensely improved
as compared to a year ago. He pointed to the entry of America and
Russia into the war, which could be lost only through mistakes made by
the Allies themselves. For details see Political Review No. 73, para-
graph 3.

The military commentator Falls declared in the periodical Illustrated
London Neva in speaking about the overall situation that with regard to
Russia's power of resistance to the new German offensive the Allies must
hope for the best, but be prepared for the worst. If Germany should
succeed in establishing contact with Japan in the Orient, this would
mean victory for the Axis, since this would completely do away with the
blockade, and consequently eliminate possibilities for an Allied viotory.
Talk about the necessity of an offensive is nonsense. An offensive in
the near future would mean nothing but suicide for the Allies.

Australia!

The government has demanded that the U.S. increase war deliveries at
onoe, aooordlng to press reports.

India t

On 27 Mar. Cripps and Gandhi met.

Canada t

The Labour Party has asked its adherents to vote for universal military
servloe during the coming referendum, and at the same time to demand
that industry be nationalized' and 100$ tax levied on war profits .

South Africa 1

A mass demonstration of colored people in Capetown demanded not only
that oolored men and women be armed, but also be glv<m the right to

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27 Mar. 19*2 CONFIDENTIAL

vote. They stated that they want to fight, not only the Japanese,, "but
also the whites, the Germans and Italians]

In contrast to this the Boer press has launched a sharp attack against
Smuts, claiming that he has placed Kafirs above white people.

Chile ;

7..= German government announced that it will pay for the loss of the
steamer TOLTEJf, if the Chilean naval investigating committee establishes
that a German submarine sank the ship.

Conference on the Situation with the Chief, Naval Staff

I. The Fleet Commander ha3 gone to Trondheim in order to take over com-
mand of the Fleet forces in Norway from the Commanding Admiral, Battle-
ships, who has been taken ill.

II. The Chief, Naval Staff Communications Division reports that the
communications equipment in Norway has been increased, and that Italian
submarines have been equipped with anti-detection decoys (Bolde).

III. The Chief, Naval Ordnance Division reports on the directive Issued
by the Chief, Army Ordnance Division concerning the construction and
procurement of equipment . Construction is not to be handled by the
ordnance divisions, hut by industry. Attention is called to the fact
that torpedo construction is an exception in the German Navy, as in all
larger navies.

IV. The Chief, Naval Construction Division suggests that an attempt be
made to avoid strengthening the landing deck or the GRAF ZEPPELIN by
finding a different solution for the airplane problem; this reinforce-
ment, made necessary by the type of carrier planes being furnished by
the Air Force, would considerably delay completion of the ship.

V. The Chief, Submarine Division, Naval Staff reports that 2 submarines
under construction at the Le Trait (Seine) shipyard were slightly
damaged during an enemy air attack, and that the transfer of the Italian
submarines to Rumania will be carried out as planned the beginning of
April .

VT. The Chief, Foreign Affairs Section, Naval Staff Operations Division
reports that in the meantime permission has been received after all to
send the 4 PT boats through France; he reports on the U.S. notes to
Vichy concerning resumption of deliveries to North Africa and concerning
the closing of the Antilles to naval forces of all belligerents; he
also reports on another note, similar to the previous one, sent by the
3 Axis powers to Chile. For details see "War Diary, Part C, Vol. VTII.

VII. The Chief, Operations Branch, Naval Staff Operations Division re-
ports on the following matters:

a. A short signal report received from ship "10"; probable de-
struction of a whaling station. (See War in Foreign Waters, Own Situ-
ation.)

b. Report of the Commanding Admiral, Norway concerning submarine
barrages In Trondheim (see Situation, Norway), and concerning naval

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27 Mar. 1942 CONFIDENTIAL

transports to Norway (see War Diary, 19 and 20 Mar.).

VIII. The Chief, Naval Staff Quartermaster Division submitted explana-
tory instructions to the Fuehrer directive concerning command organiza-
tion in coastal defense. The Chief, Naval Staff approves. See l/Skl
7296/42 Gkdos. in War Diary, Part C, Vol. X.

Special Items

I. Planning of the operation against Egypt and Suez .

With reference to the situation analysis of the Naval Staff of 20 Mar.,
the German Naval Command, Italy is instructed as follows by telegram on
24 Mar.:

The Fuehrer in principle approves the situation analysis of the Naval
Staff. Whether and when the operation will be carried out depends upon
numerous military conditions which lie outside of the competence of the
Navy. The problem is still in the planning stage. As long as there is
no Fuehrer directive that preparations should be started^plans will have
to be confined to matters pertaining to naval affairs. The Commanding
General, Armed Forces, South, the Panzer Army, Africa, other Army or
Air commands, and Italian commands will not participate.

The Naval Staff confirmed and explained in detail the above telegraphic
instructions in writing, pointing out the basic requirements for the
operation; the' problem of supply shipments from Italy to. North Africa;
the naval situation In the Mediterranean, which has developed more and
more in our favor since the end of 1941 due to operations by German
submarines and planes; the coastal transport situation; the operations
of Italian transport submarines; the over-all impression of the trans-
port situation; and the question of increasing harbor facilities. The
Naval Staff stated that the objective of German warfare should be to
make the decisive thrust against Suez this year. For this purpose the
Information necessary for such a decision should be made available as
quickly as possible to the Armed Forces High Command. Appended to these
instructions is a memorandum of the Army General Staff concerning the
supply situation in Africa as of 22 Feb., as well as an inquiry by the
Army High Command "How much shipping space will the Panzer Army, Africa
need for an attack on the Suez Canal?" For copy see l/Skl I b 532/42
Gkdos. Chefs, in War Diary, files "Operation Suez (Aida)".

II. The Chief, Naval Communications Division reports on the investiga-
tion of s e c ur 1 1 y me a s ur e s called forth by the loss of ship "lb" and the
PYTHON (this report has been sent to Groups West and North, the Fleet
Command, the Commanding Admiral, Submarines, and the Commanding Admiral,
Norway). He states positively that during the period under investiga-
tion no systematic treason was committed involving important offices;
on the other hand it is impossible to determine the role of occasional
leaks due to negligence in communications by wire and conversation, and
to unauthorized access to conference rooms and documents.

See Ski Chef. MND Stab 6}l/42 Gkdos. Chefs, in War Diary, Part C, Vol. I.

III. War experiences of the defense forces .

Experiences made in wartime by minesweepers, motor minesweepers, in the
escort service, and in anti-submarine warfare must be communicated as
quickly as possible to all other commands which could profit thereby.

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27 Mar. 19*42 CONFIDENTIAL

The Naval Staff orders that the Commanding Admiral, Defenses, North, the
Commanding Admiral, Defenses, Baltic Sea, and the Commander, Minesveeper s,
Baltic Sea issue regularly special reports on their experiences for
their areas, as the Commanding Admiral, Defenses, West is already doing,
and that they send them to the ether command areas, including the Com-
manding Admiral, Norway and Group South.

See l/Skl I E 6310/42 Gkdos. in War Diary, Part B, Vol. V.

IV. A short memorandum on the main points of the discuss ion between
the Chief of Staff, Naval Staff and Vice Admiral Nomura on 27 Mar.

The Naval Staff sees no possibilities in the Pacific for the enemy to
undertake large operations for a long time. In the Atlantic enemy in-
tentions to launch an offensive are noticeable, to be sure, but they
can hardly be realized in the near future. On the other hand, the Naval
Staff considers the Indian Ocean area as most endangered in the interest
of German- Japanese warfare. The important sea communications of the
enemy run through these waters, as follows:

1. To India for strengthening the India and Burma front against
Japan.

2. To Iran to support the Russian front and protect the oil wells
in the Near East.

3. To the Red Sea and Egypt to strengthen the North African front
in the Suez-Libya area.

If Japan could win supremacy in the Indian Ocean, the vital British com-
munication lines would be greatly endangered.

Conclusion to be drawn from this situation for German- Japanese warfare:

a. It is necessary for Germany to cut the Anglo-American
sea communications in the northern area for the support of Russia .

b. It is necessary for Japan to cut the enemy's sea communi-
cations to India and the sea routes In the Indian Ocean to Iran and the
Red Sea.

Germany is entirely convinced of the decisive significance of an opera-
tion toward the Caucasus to win an oil base and to make connection with
Japan later, and fully recognizes the importance of launching an offen-
sive against the strategically important position of the ener^ in the
Kiddle East. The prerequisite for this is that the Eritish sea communi-
cations in the Indian Ocean be harassed and broken off as soon as pos-
sible.

Therefore the Naval Staff desires that the Japanese Navy operate as soon
as possible in the northern part of the Indian Ocean.

Result of the conference :

1. The Japanese Liaison Staff desires to be informed by the Armed
Forces Operations Staff about German plans for operations and the ap-
proximate dates of such operations. (The liaval Staff will put this
question to the Armed Forces High Command.)

2. The Naval Staff desires to be informed in the near future by the
Japanese about the probable time of Japanese operations In the Indian
Ocean.

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27 Mar. 1942

CONFIDENTIAL

Possible plans for operations against Ceylon, the Seychelle Islands, or
Madagascar. Inquiry whether Japan considers operations against Australia
and New Zealand operationally more important than an offensive against
the enemy sea communications in the northern Indian Ocean.

Germany and Japan will exchange written opinions, by request of the
Japanese.

V. Fuel oil situation ;

Fuel oil to be expected in April:

Produced in Germany
Produced in Estonia
Produced in Rumania

47,000 tons

4,000 tons

46^000 tons

Total: 97,000 tons

In the following months a similar amount will probably also be available.

The Naval Staff Quartermaster Division Is instructed to allocate 25,000
tons of this for maintenance of the most necessary services of training,
supply, and escort of the German Navy, and 20,000 tons for the Fleet
forces. in Norway - together 45,000 tons. This amount makes Fleet oper-
ations of any importance absolutely out of the question.

For the present the Italian Navy, which has reported needing 75*000
tons, will be allocated only the 46,000 tons of Rumanian fuel oil. The
remaining 6,000 tons are to be kept as reserve, and can be allocated
only with special permission of the Armed Forces High Command.

The' following instructions, taking account of the emergency situation,
are sent to Groups West and North and the Fleet Command; a copy is
sent Group South:

The unfavorable development of the fuel oil situation and the necessity
of keeping fuel oil available for the Italian Navy, considering the
high priority escort tasks to North Africa, force a further decrease
In fuel oil consumption of the German Navy. Therefore for the present
we must dispense with operations by heavy forces using fuel oil. The
amounts allotted must suffice, if we are not to lose even the minimum
of operational independence by prematurely consuming the small stocks
still at hand.

However any operations made necessary by offensive operations of the
enemy are to be carried out without regard for the allotments. Here,
too, it should always be kept in mind that any fuel oil over and above
the allotments which is used is drawn from reserves and canno.t be re-
placed.

For copy see l/Skl I g 667/42 Gkdos. Chefs, in War Diary, Part C, Vol.
IX.

Situation 27 Mar. 1942
I, War in Foreign Waters
1. Enemy Situation :

For a compilation of enemy reports up to 22 Mar. collected by

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27 Mar. 19^2 CONFIDENTIAL

the radio Intercept and radio deciphering services see Radio Intelli-
gence Report No. 12/42 of the Naval Communications Division, Radio In-
telligence Branch.

South Atlantic ;

The cruiser DIOMEDE is expected in Montevideo on 26 Mar. Ac-
cording to an intelligence report of 18 Mar. from Freetown, a large con-
voy is being assembled there, which is to transport manganese, tin,
copper, Congo rubber, lumber, and peanuts to the U.S. U.S. cruisers
have been brought to Freetown to escort the convoy. On 18 Mar. a large
convoy from South America was expected, which several British cruisers,
including the CHARYBDIS, the DAUNTLESS, and the DELHI, are escorting.

According to a press report from London, the U.S. Navy will take over
Allied operations in the Pacific, so that the British Navy can rein-
force its forces in the South Atlantic.

U.S. air forces are stationed in Costa Rica.

Neutrals :

According to the official news agency (DNB) the Portuguese
troops intended for Timor have arrived in Mormugao (Portuguese Indies)
on steamer JOAO BELO under escort.

Radiogram 1980 informs ship "10" accordingly.

The Naval Staff believes that the route to Australia around the Cape
of Good Hope is' promising for operations by ship "10". Radiogram 2222

informs ship "10 of this opinion, and instructs her not to proceed

north and east of 10© s and 80° e, since otherwise there is danger that

she might run into the Japanese Navy; she is also informed that a

rendezvous is planned between the REGENSBURG and TANNENFELS in the
northwestern corner of the "Metalle" area.

At 2217 Norddeich picked up the following message, evidently a repetition
of the garbled message received in the morning: "Silently seized*
PAGASITIKOS on 23 Mar. in GO 37. Handed over prisoners. Ship '10'."

Confirmation of receipt of message was sent to ship "10" via Radiogram
2309.

This success of the auxiliary cruiser is especially
welcome since it is the ship's first, and thus has sig-
nificance for the morale of the crew.

All ships in foreign waters are informed about reference points and
their positions on route "Japan gelb" via Radiograms 1807 and 2126.

The Swedish steamer CIRILLA left New York for Greece under protection
of the International Red Cross.

* Silent seizure (lautlose Aufbringung) : a method of attack used by
German merchant raiders to prevent the victim from sending out radio
messages. The raiding ship's plane would swoop down on its victim in
a surprise attack and cut the latter 's antennas by means of a specially
designed gear.

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27 Mar. 19^2 CONFIDENTIAL

2. Own Situation ;

Ship "10" reports by short signal: "26 Mar. finished talcing
on supplies. Up to now found nothing in Antarctic."

A further short signal was garbled and could not he deciphered.

Radiogram 0752 confirms receipt of telegram.

The Naval Staff concludes from this report that ship "10" has taken on
about 1,600 cubic meters and is 1 proceeding to the Indian Oceanj that
the REGENSBURG has been dismissed, is proceeding on a southerly course
toward a latitude 7° further south than point "Maastricht", and then
will continue east to the Indian Ocean. Only 1 quadrant near the ren-
dezvous point was deciphered from the garbled message. There is no
objection to having the message repeated.

According to the Naval Attache at Buenos Aires, the Argentine ship
PRIMO DE MAYO, en route to relieve the meteorological station on the
South Orkneys, found the whaling station at Port Foster on Deception
Island destroyed.

The Naval Staff believes that this might have some connection with ship
"10", and considers this an indication that the presence of an auxiliary
cruiser in the Antarctic is of value.

Information on the enemy situation is sent via Radiogram 0205.

II. Situation West Area

1. Enemy Situation :

According to a submarine report, 3 destroyers and 10 PT boats
on westerly course were in quadrant BF 5^o8 at 0720.

According to Reuter numerous mines were laid in enemy waters in the
night of 25 Mar. during plane operations. 11 British bombers did not
return from their missions during this night.

Lively air activity over St. Nazaire beginning at 2330.

2. Own Situation ;

Atlantic Coast ;

During an enemy air attack on St. Nazaire during the night
of 25 Mar., 7 vessels of the 16th Minesweeper Flotilla and 2 vessels of
the harbor patrol flotilla were damaged more or less severely by bombs
and splinters. Moreover 2 tankers and 1 dredger were damaged, and there
was other damage. For details see Telegram 0740.

The Loire and Gironde estuaries were closed because of danger from mines.

Channel Coast :

During an enemy air attack on Le Havre the afternoon of 26
Mar., 1 hit was scored on ship "36", which is being converted there. 3
of the attacking planes were shot down, 2 of them within 2 minutes of
one another by patrol boat "1506" . At point 9 on route "Rosa", 3 ground

- 271 -

27 Mar. 1942 CONFIDENTIAL

mines vere swept, and on route "Lila" 3 AT mines, 1 of which was brought
Into Boulogne. For details see Telegram 0740.

The 2nd PT Boat Flotilla laid 12 LMB mines on the convoy route between
points 54 B and Z. For brief report see Telegram 1035.

The 4th PT Boat Flotilla went on a minelaying operation on the convoy
route southeast of Crfordness, but had to break it off because of the
weather.

Special Item :

Group West, Group North, and the Commanding Admiral, Submarines
are informed about the Fuehrer's instructions to the Army High Command
and the Commander in Chief, Air, concerning measures to prevent possible
enemy attempts to capture the Cherbourg and Brest peninsulas, in order
to set up a new western front. The Naval Staff requests the Commanding
Admiral, France to examine the quarters of the naval commands and of
the submarine crews in accordance with this directive, and if necessary
to order them transferred with the approval of the commanders involved.
See the Naval Staff Quartermaster Division order, l/Skl 7380/42 Gkdos.
in War Diary, Part C, Vol. X. (cf. the order of the Chief, Naval Staff
in War Diary of 25 and 26 Mar.j.

Ill* .North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation :

Lively convoy activity on the east coast. Radio intelligence
intercepted the report of a British reconnaissance plane in the after-
noon, concerning German shipping off Sylt and Lister. 75 miles south-
east of Lister 2 eastbound merchant ships were unsuccessfully attacked
with aerial torpedoes.

Own Situation :

Mine detonating vessel "147" sank off Hook of Holland after
sweeping 3 ground mines, which detonated under her bow within one and a
half minutes of one another. The Commanding Admiral, Defenses, North
therefore repeats his very urgent request that all mine detonating ves-
sels be equipped with pole reversing gear and noise box turbines (GET).
See Telegram 1355.

At 0130 a Dutch fishing steamer was sunk off Ijraulden by 3 British PT
boats with machinegun fire and depth ch«tr5«s. The harbor entrance of
Hook of Holland was temporarily closed because of mine danger.

Convoy and transport operations according to plan.

The 5th transport group Hamburg - Kristiansand left on 26 Mar. with
3,642 men aboard.

2. Norway :

Enemy Situation :

Lively air activity in the Petsamo area on 24 and 25 Mar.,

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27 Mar. 1942 CONFIDENTIAL

at Bergen, Feiestein, Lister, and Kristiansand South on 26 Mar.

According to air reconnaissance, there were 3 large eastbound merchant
ships at 720 30' N, llo 20» E (300 miles north of the southern tip of the
Lofoten Islands) at 0955.

Ovn Situation ;

The 8th Destroyer Flotilla, with destroyers Z "26", "24", and
"25" entered Kirkenes and is on 1 hour readiness. Convoy operations
proceeded according to plan. For 26 Mar. an enemy plane attack on the
convoy of steamer ASIEN has been reported. There was slight damage,
no casualties.

As the result of Group North's reminder that it is necessary to have
sufficient air reconnaissance in the Arctic Ocean (see War Diary 25
Mar.), the 5th Air Force makes reference to the instructions for war-
fare issued by the Commander in Chief, Air, according to which requests
for reconnaissance over the entire sea area are to be made by the
Admiral, Arctic Ocean to the Air Commander, East, who will fulfill them
as far as possible, the weather and other urgent tasks permitting. The
5th Air Force considers that this answers the telegram of Group North
(see Telegram 1600).

Group North will certainly not fail to take a stand on
this peculiar behavior.

See l/Skl 7246/42 Gkdos. in War Diary, Part B, Vol. IV. for the commen-
dation of the Commanding Admiral, Norway expressed to subchasers "1205",
"1404", and patrol boat POLARFRONT for sinking an enemy submarine on
14 Jan.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

The reports that the Norwegian ships were leaving Goeteborg were not
substantiated. 6 ships are lying across from the naval station. None
of the ships are left in the inner harbor. The Swedish Naval Staff con-
firmed the report that if the ships leave they will be escorted right
to the border of the Swedish territorial waters.

Otherwise no special incidents.

Additional planes and ships are patroling the Kattegat and Skagerrak.

V. Submarine Warfare

1. Enemy Situation :

According to the radio intercept service of the Array, a convoy
has left Inverness. 10 transports are destined for Reykjavik.

All U.S. merchant ships have been ordered to pass Cape Hatteras and
Cape Lookout at a distance of JO miles.

The British Admiralty announced the sinking of the trawlers BOTANIC and
WARLAND, and the U.S. Navy Department the sinking of the coast guard
vessel ACACIA in the Caribbean Sea.

- 273 -

27 Mar. 19^2 CONFIDENTIAL

According to Reuter, an unarmed U.S. freighter supposedly unintentionally
rammed a submarine on 13 Mar. An underwater explosion was heard after
the ramming. In spite of a 10 hour search, no survivors were found.

■

2. Own Situation :

Submarines in the Arctic Ocean were informed that 3 large
merchant ships were sighted southwest of Bear Island on easterly course.
As soon as contact has been reported, Group North intends to transfer
command of these submarines to the Admiral, Arctic Ocean, so that they
may operate jointly with the submarines stationed off Murmansk.

SuBmarine U "569" reported sinking a 5,000 GRT steamer in quadrant AM
2717.

A southbound convoy, evidently an 0G convoy, was sighted 400 miles south-
vest of Porcupine Bank. Submarine U "587" is to maintain contact as
long as her fuel permits. Submarines in the vicinity are to operate
against the convoy if their positions are favorable.

See War Diary, Part B, Vol. IV for a survey of the submarines in opera-
tion and for a supplementary situation report.

VI. Aerial Warfare

1. 3ritish Isles and Vicinity ;

7 of the attacking planes were shot down during enemy air
raids during the day.

Fighter bombers severely damaged a 3,000 QRT steamer in the harbor of
Torquay and a 5,000 GRT steamer in the harbor of Paignton. 7 German
planes flew armed reconnaissance missions during the night. A small
number of enemy planes flew into the St. Nazaire area at midnight, and
10 planes into Germany as far as Wesermuende and Borkum. One plane
flew via Ruegen and Schneldemuehl as far as Lodz and back. 5 enemy
planes were shot down over Reich territory.

2. Mediterranean Theater :

Photo reconnaissance of Valletta at 0840 showed that as the
result of the attack of 26 Mar. 2 steamers in the harbor were burning,
and a third still had her stern under water. No damage was seen on
the 4th steamer. 2 destroyers had recently docked. 9 oil tanks were
definitely destroyed.

Thus in the opinion of the Commanding General, Armed Forces, South, the

r eater part of the Malta convoy, which originally consisted of 7 or
merchant ships, was destroyed by the air force's at sea and the rest
in the harbor. The Commanding General -, Armed Forces, South believes
that the enemy succeeded in unloading only a part of the cargo. The
ships destroyed in the harbor alone total approximately 25,000 GRT
according to photo reconnaissance.

Some of our planes continued the attacks on Valletta and the airfields
on Malta.

Contact was maintained between 091? and 1910 with a force north of
Tobruk consisting of 1 cruiser and 4 destroyers on easterly course.

- 27* -

27 Mar. 1942 CONFIDENTIAL

The X Air Corps carried out successful operations against the desert
railway.

3. Eastern Front ;

Bad weather greatly interfered with operations on the Army
front on 25 Mar. On 26 Mar. greater activity was possible. 9 German
and 39 enemy planes were lost.

VII. Warfare in the Mediterranean

,1. Enemy Situation :

Task Force H left Gibraltar in an easterly direction during
the afternoon with 7 destroyers.

The ships attacked by Italian planes off Cape Bon on 21 Mar. were
actually British motor gunboats, according to the French Armistice Com-
mission. The vessels had red and white identification stripes on deck.
Motor gunboats of a similar type are said to have been sighted repeatedly
from land flying the Italian flag.

Photo reconnaissance of Valletta at 0840 showed 2 light cruisers, 5
destroyers, 1 destroyer without bow, 4 submarines, 4 steamers, and 1
harbor tanker (see also Aerial Situation).

The burning merchant vessel was still lying in Marsa Scirocoo. Accord-
ing to German air reconnaissance, a force consisting of a light cruiser
and 4 destroyers with fighter escort was proceeding at high speed in an
easterly direction between Tobruk and Marsa Matruh. Since an Italian
submarine heard ship noises at 0415 approximately 84 miles north of
Derna, it is possible that these were the naval forces which left Malta
the morning of 26 Mar.

A westbound force consisting of a cruiser and 3 destroyers was reported
by air reconnaissance northeast of Ras Azzaz. 60 miles west of Alexan-
dria, 2 large and 2 small merchant vessels with fighter escort were
sighted at noon on a 240° course. According to Italian radio intelli-
gence, a British force was attacked by planes at 1135, 30 miles north-
west of Ras Azzaz, and a cruiser at 1523, 33 miles northeast of Solium.

According to an Italian report from a reliable source, the British sub-
marine flotilla in Malta consisted of 12 submarines of the U class.

2. Own Situation :

The 4 vessels of the 6th Motor Minesweeper Flotilla which are
ready for operations entered Messina on 27 Mar. They are to continue
to Trapani early on the 28th.

3. Situation Italy :

Enemy planes attacked Benghazi during the night of 26 Mar.
No important damage.

4. Transport of Supplies to North Africa :

Transport traffic by means of single steamers was to be re-
sumed the evening of 27 Mar. or 28 Mar. Traffic along the North African

- 275 -

27 Mar. 19*2 CONFIDENTIAL

coast proceeded according to plan.

5. Area Naval Group South ;

See Telegram 1915 for the request of the Admiral, Black S9a
that an additional naval artillery battalion without guns be seat to
the Naval Shore Commander, Ukraine for occupying the most important po-
sitions from Berdyansk to Taganrog (guns to be furnished from the Army
captured materiel). The Naval Staff Quartermaster Division vill handle
the matter. Otherwise no special incidents.

VIII. Situation East Asia

1. Enemy Situation ;

The U.S. Navy Department announced that a 3rd destroyer, the
LOCACE, was lost in the battle of the Java Sea, and that Pearl Harbor
has become useless as a base.

According to Reuter 54 heavy Japanese bombers attacked the fortified
islands at the entrance to Manila Bay for 6 hours. The attack was
concentrated on Corregidor: Supposedly no important military installa-
tions were damaged. According to a report fron the Military Attache at
Bangkok on 25 Mar. U.S. submarines are active off Shanet..ai r Formosa,
Hongkong, and the Bonin Islands.

2. Situation Japan ;

According to the same report, heavy Japanese air attacks
were made on Australian airfields and Port Moresby, in addition to
Bataan. Japanese troops have reached the Papua Gulf and are advancing
along the coast toward Port Moresby.

IX. Army Situation

1. Russian Front ;

Southern Army Group ;

Local enemy attacks in isolated sectors of the Von Kleist
Army Group were unsuccessful. Near Sal to, east of Kharkov, and south
of Volchansk enemy pressure is increasing. In the 2nd Army sector, an
advance by German panzer forces south of Dolgoye was successful.

Central Army Group ;

Southwest of Sukhinlchi advanced German units were withdrawn.
Enemy attacks were repulsed at Demenskoye and Yukhnov. The Gablenz
group succeeded in reestablishing connection with Yelnya from the east.
The first supply train has reached the city. Enemy attacks from the
pocket and west of Vyazma were unsuccessful. Soldiers 14 to 16 years
old were captured. Northeast of Gzhatsk the enemy penetrated our po-
sitions after several unsuccessful attacks. Northwest of Rzhev the
enemy attacked the penetration point with several waves of tanks. At
the southern front several enemy tanks and some infantry succeeded in
breaking through our lines. South of Velizh, German forces threw the

- 276 -

27 Mar. 19^2 CONFIDENTIAL

enemy back to the east. West of Velizh the enemy temporarily blocked
the supply route. The road from Veliklye Luki to Nevel has been cut at
4 places.

Northern Army Group :

Attacks southwest of Kholm and near Demyansk, involving enemy
paratroops, were repulsed under heavy enemy losses. Enemy attacks on
the advanced positions of the Von Seydlitz Group southeast of Staraya
Russa were repulsed. Fighting is still in progress at the penetration
point west of Yamno.

2. Finnish and Norwegian Front ;
Situation unchanged.

3. North Africa ;

There is lively enemy scouting activity ahead of the German
Africa Corps. f

#**♦*♦♦*♦***##*#♦*#**####

- 277 -

::?rr. i::iai

23 Mar. 19*2

Z~e^5 cf ?cliti:=.l Irr:r: = :::e

- : e ;

)ttor attempt vas made on the life of Marcel Deat, leader of the
-.5.?. =.-1 zr.e -zs: DUtapokea advocate ir. Franca :f collabora t i : :: vith
Germany.

:•---. £.. 2 ri :=.!- :

?Ign press a nurier :f ie^=z;3 are reported vhlch have eoerged
mi the prelitinar the annual convention of the Latoi*

Party. Their foreign policy calls for total victory; their domestic
policy attacics the ve ions of the British social and economic
ardor j =.ir_i-.- -z ::::i".; _ =■ =..". -7 ir.:_-:r:e = =~i =11 far- lards.
'-::_'£".:- 7^~~7 - -~ ^ -""- ----- ~: r^.-:e ill ; . r - h :f rr:r_ise: tc the

- people If tney would aba: :Lb.'.Ls~. The ieriar.is rf

r tra- = ;::.- -=.t J .:- vor leers are said to he especially radical.

rtre ordinary session of the cczzzzL--.ee ::' rress

rty on 51 Mar . / -'_ ; 33 the ■nor : _r - :e :-':z:::e: ~:

The following 5 points font the basis of the memorandum:

1. All Hindu leaders ar: 3 to continue the war
against the Axis powers together with Britain until final victory.

2. Britain is to promise to give India a ::-tion which would
grant India an equal aaount of Independence with the other sovereign
Allied nations.

3. Eritair. is zz -rrrlse - : malte Ir.iis after zr.e wax lota :re
nation headed by a constitutional body with many rights .

All positions on the executive zo — . -.zee :: tre 71 ersy are to
be filled with Indians, who are to handle all external financial and
military natters .

:. A war ret is to be formed at dum in India, in which the
natives of the provlr. alac participate.

.-.•-L5T.rslia :

According to a seal- official : r-enerel Blarney, who has so far been

the Coaaaader in Chief of the Austr -. forces In the Middle East, has

to Australia in order to 1 lied forces under NacArthur.

part of the 2nd Australian Elvis La being transferred from the

Idle East back to Australia.

Roosevelt has informed the Maritime Commission that the U.S.
in its deliveries to Russia, and he rested that these orders are to
take priority over construction of merchant ships. Corresponding In-
structions have been Issued to z r and Savy Departme d - .

Japan :

The gcvernment has sent a special envoy to the Vatican. Accordingly

- 278 -

28 Mar. 19^2 CONFIDENTIAL

the papal nuncio in Tokyo Is being accorded all diplomatic privileges

A government decree has abolished the right of foreigners to lease
Japanese land permanently.

Situation 28 Mar. 19^2

I. War in Foreign Waters

1. Enemy Situation :

The U.S. War and Navy Departments have announced that instruc-
tions have been issued for closer cooperation between Fleet and Army
commanders on the coast. In accordance with these Instructions, units
of the Army Air Force have been attached to the Navy commands. This
measure is meant to aid the anti-submarine defenses on the Atlantic and
Pacific coasts.

The U.S. Navy has announced 7 new controlled areas: San Francisco, the
Columbia River, Puget Sound, southeastern Alaska, Prince William Sound,
and Kodiak in Alaska.

For description of the Panama Canal see Naval News Analysis, Foreign
Navies, No. Ik, issued by the Naval Intelligence Division.

South Atlantic :

U.S. steamer DELBRASIL arrived in Uruguay on 23 Mar. with the first
shipment of war materials from the U.S., consisting of planes and antiair-
craft and coastal guns. At the same time a U.S. military commission
arrived in Montevideo.

Indian Ocean :

According to the radio intercept service, the WARSPITE evidently was
near Mauritius on 28 Mar. A British steamer 180 miles southeast of
Calcutta reported an attack by a k engine bomber.

2. Own Situation :

Radiograms 1817 and 0929 inform all ships in foreign waters
about reference points and the position of route "Rollbahn".

Reports on the enemy situation were sent by Radiograms 0328, 1221, 15^7,
1639, and 2132.

II. Situation West Area

1. Enemy Situation :

According to the radio intercept service, a British force was
located at 0858 approximately 60 miles southwest of St. Nazaire, and at
0916 about 95 miles southwest of St. Nazaire. The force was located
off and on in the same area until 1140. A British plane was ordered
at 1335 to establish optical contact with the closest destroyer. An-
other plane was ordered at 1^35 to report landing conditions at sea, in

- 279 -

28 Mar. 1942 CONI CDENTIAL

order to take over wounded personnel from destroyer DECATUR. At 2045
Davenport asked a motor gunboat force to report its position, which was
to be given to escort vessels which were sent to the rescue. The force
addressed reported at 2515 from 150 miles southwest of Brest headed for
the Scilly Islands, stating that fuel was running out and that they were
in need of medical assistance.

No reports from the radio intercept service were available for the night
of 27 Mar*.

2. Own Situation ;

Atlantic Coast :

The scattered enemy reports intercepted are connected with a
British nuisance raid on the submarine base at St. Nazaire , which was
initiated by a violent air attack at 2330 on 27 Mar. and ended abruptly
early on 28 Mar. in an enemy defeat. Thanks to the facts that attention
was diverted to air defenses, and that air reconnaissance and naval
patrols were lacking due to the chronic shortage of. forces, one old de-
stroyer loaded with explosives and approximately 10 motor gunboats suc-
ceeded at midnight at high tide in entering the Loire, getting the de-
stroyer through the net barrage, and ramming her into the outer gate of
the Normandie lock. The naval coastal batteries and naval antiaircraft
batteries, as well as mine detonating vessel "137", the 2nd and 8th
Minesweeper Flotillas, and harbor patrol boats, succeeded in destroying
all but a few (l to 4) of the enemy vessels before they reached the
shore. The crew of the destroyer put the pump of the lock out of com-
mission, and entered the nearest streets" and houses, where they were
annihilated or captured by naval detachments and an Army detachment which
had been alerted in the meantime. 3 vessels of the l6th minesweeper
flotilla took part in the land fighting, and protected the open side of
the submarine pens. It is impossible to gain a clear picture yet from
the mass of details reported. However it is clear that the submarines
and submarine crews did not suffer in any way, and other damage is com-
paratively small and easily repaired. Unfortunately, the explosives on
the destroyer exploded at 1145, when German personnel was already aboard
to secure documents and equipment, and there were unfortunately numerous
curious bystanders, mostly French shipyard workers, in the vicinity, so
that the number of casualties on our side increased considerably. For-
tunately the secret documents of the destroyer and the enemy's latest
mine chart had been removed previously.

4 vessels of the 5th Torpedo Boat Flotilla, which were engaged during
the night in sweeping the routes because of mine danger, received the
first report of the attack at 0315 and returned at top speed to St.
Nazaire. 1 British motor gunboat was captured by the JAGUAR after a
short engagement, and was later brought in by patrol boats. The other
vessels of the flotilla engaged 6 to 8 enemy destroyers. The SEEADLER
and the ILTIS fired torpedo fans and scored 4 definite gun hits on 2
enemy ships. Because of the low visibility (morning fog) further obser-
vations were impossible.

According to the first reports 21 British soldiers were killed and 140
captured on land. Our losses amounted to 67 dead, 62 badly wounded, and
74 slightly wounded, including the victims of the explosion of the de-
stroyer CAMPBELLTOWN.

Among the secret papers captured there was information about German
recognition signals for 26 to 31 Mar. I

For a preliminary report from 0800 of the Admiral, Western France and a
brief report of Group West see l/Skl 7334/42 and l/Skl 7422/42 Gkdos.

- 280 -

28 Mar. 19^2 ^FIDENTIAL

in War Diary file "British Landing at St. Nazaire on 28 Mar. 19^2". The
Naval Staff keeps the Fuehrer,, the Armed Forces High Command, and the
Army High Command informed by telephone via the Naval Liaison Officers,
and in the course of the afternoon sends a summary by telegram. For
copy see War Diary file "British Landing at St. Nazaire on 28 Mar. 19^2".

At 1625 the Armed Forces High Command, Operations Staff sent a new
Fuehrer directive ordering that especially the headquarters and quarters
of the Commanding Admiral, Submarines should be removed from the coast
at once. "Likewise inactive submarine crews are to be taken to a safe
place. The Fuehrer expects an immediate report that this order has been
carried out . "

The Chief, Naval Staff had already given an order to this effect on 25
and 26 Mar., and the order went out on 27 Mar. (See War Diary 25, 26,
and 27 Mar.)

Group West states as follows on the basis of information available so
far:

a. The higher coastal defense commands functioned excellently;
likewise cooperation between the branches of the armed forces was good.

b. The enemy surprise attack was successful because we lacked
continuous air reconnaissance.

c. It was impossible effectively to pursue the withdrawing enemy
because of shortage of sufficient fast strong naval forces, sufficient
reconnaissance, as well as bombers available for immediate use.

d. It is urgently necessary to set up an adequate radar net
against approaching ships.

On the basis of the special report of the Armed Forces High Command on
the successful defense against the enemy surprise attack, the Command-
ing Admiral, France requests a correction to the effect that only naval
guns and antiaircraft guns fired on the enemy vessels, and not Army or
Air Force antiaircraft guns.

Channel Coast :

No special incidents.

Special Items :

a. The Fuehrer has ordered that a naval landing detachment
be organized.

The Operations Staff, Armed Forces High Command therefore orders that
effective at once the Naval High Command organize a naval fortress
brigade to begin with. This brigade is to safeguard the islands off
the Atlantic coast, i.e., lie de Grolx, Belle lie, and lie D'Yeu.
The personnel is to be taken from existing naval detachments and from
various staffs and other commands.

The brigade will be under the operational command of the Commanding
General, Armed Forces, West.

For copy of order see l/Skl 7289/A2 Gkdos. in War Diary, Part C, Vol. X.

b. The Army General Staff replied to the Naval Staff's re-
quest that the safety of coastal areas be kept in mind during troop

- 281 -

28 Mar. 19*2 COKFXDEIfTIAL

withdrawals from the western area that the Army High Command is fully
aware of the importance ;: adequate protection of naval bases along the
French coast. The Ar. en all possible measures for protecting
the important coastal bases insofar as available forces permit. In
view of troop transfers to the Eastern Front the troops available for
coastal defense cannot be increased; however the Army High Command Is
striving to increase the strength of » these troops by supplying then with
captured weapons .

The Naval Staff informs Group Vest and the Commanding Admiral, France of
this reply.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Zneny Situation :

Air reconnaissance located only 1 ccnvoy off Hartlepool. Ac-
cording to the radio intercept service, an auxiliary ship received orders
from Harwich to meet the British yacht VESTAL and to carry out an opera-
tion the character of which is unknown.

Own Situation :

Shortly after 0100 the Danish steaner BERTHA (766 GRT) which
was engaged in the Ens-Elbe traffic sank very quickly with considerable
loss of life 500 meters from buoy 25 on route Hellrot" as the result of
a ground mine explosion. Otherwise convoys proceeded without special
incidents. During the night of 27 Mar. enemy planes were active over
the North Sea coast as far as Schleswig Holstein.

2. Iforway :

Enemy Situation :

According to the radio intercept service 3 British vessels
were located on 26 Mar. between the western -rip of the Rybachi Peninsula
and the western tip of Vardoe. These were evidently waiting for convoy
PQ 15. On 28 Mar. at 2100 1 vessel, evidently a cruiser, was loca-
120 miles northeast of Varcce, and 3 destroyers were located 2 miles
from her. The cruiser reported sirr.:ing a submarine.

Air reconnaissance srr.:e: a convoy 90 miles northwest of the North Cape
(quadrant AC 48l6) at 1017; at 1039 an enemy submarine 65 miles north-
west of North Cape (AC 4863); and at 1140 6 merchant vessels of fro«
2,000 to 8,000 GRT, 1 destroyer, and 1 guard boat 18 miles northwest of
North Cape on a westerly course. Submarine U "309" reported a convoy
of 6 steamers, 1 destroyer, and probably 1 cruiser on a southeasterly
course, speed 10 knots, 120 miles north of Nordkyn; she fired 1 tor-
pedo at one of the escort vessels, but missed.

Own Situati on:

At 1420 the Admiral, Arctic Ocean reported that the 8th De-
stroyer Flotilla, consisting of 3 destroyers, and group "Eiswolf" wit
3 of the submarines operating off the Murman coast, as well as submarine
U "585 " were sent out to operate against the convoy located by air re-
connaissance. If possible the 3th Destroyer Flotilla is to bring in

- 282 -

28 Mar. 1942 v JFIDENTIAL

the convoy in Its entirety.

Group "Ziethen" is to operate against the convoy located by submarine
U "209".

Group North assumes that there are additional sections of the convoy
behind the ships reported, and extends the operational area of the
Admiral, Arctic Ocean to the west as far as l6o E. In addition the
Group gives him command of the 2 submarines stationed at Narvik, which
are to take up positions in the area between 16° and 26° E. However,
these submarines are to continue to protect the Lofoten area. German
submarines are told not to attack the destroyers.

The 8th Destroyer Flotilla left Kirkenes at 1430 for the operation.

The spot where battery 558 is being set up near Petsamo was shelled by
the Russians with 56 rounds from 13 cm. guns. Battery 885 returned
the fire. So far 3 mines, evidently submarine rack mines, were swept
in the entrance to the Petsamo Fjord.

Convoy operations proceeded according to plan without special Incidents.

The Fleet Commander reports that he took over command of the forces in
Norway and the post of the Commanding Admiral, Battleships on the flag
ship TIRPITZ.

VI th regard to the brief report of cruiser HIPPER (see War Diary 25 Mar. ),
Group North justifiably criticizes the high speed which led to increased
oil consumption and to the dismissal of the light escort forces. For
copy see 1/Skl 7405/42 Gkdos. in War Diary, Part C, Vol. II a.

See Telegram 0950 for Group North's stand on the reply of the 5th Air
Force concerning requests for reconnaissance and bombing planes (see
War Diary 27 Mar.).

Troop transports to Norway

a. According to the latest information from the Supply and Trans-
portation Office, about 50,000 men are being shipped to. Norway. 19,000
of these have been shipped, and 4,000 are awaiting shipment in Copen-
hagen. The remaining 27,000 are in Hamburg, and 14,500 of these are
destined for the area north of Trondheim.

b. It is impossible to transport 14,500 men from Hamburg directly
to the northern area because of lack of shipping space, since these
ships would then not be available for other operations for 5 to 6 weeks.
This Is intolerable, In view of new transport requirements and opera-
tions in the Baltic Sea (transports to Finland and the eastern area).

c. The Armed Forces High Command orders that the transport opera-
tions under a. should be carried out by 7 Apr. For this purpose begin-
ning 29 Mar. 2 .convoys with 4 transport vessels are to leave each week
from Hamburg for Oslo; on 6 Apr. the POTSDAM and GNEISENAU are to leave
Hamburg for Oslo, and the remaining 5,000 men are to be shipped directly
to northern Norway on ships some of which are coming from Copenhagen
and some of which are just being repaired.

d. These ships will remain in northern Norway for transports from
Trondheim to the north.

«

The Naval Staff issues corresponding Instructions to Group North,with
copies to the Commanding Admiral, Norway, the Commanding Admiral,

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28 Mar. 1942 C ONFIDENTIAL

Defenses North, the Commanding Admiral, Defenses, Baltic, the Naval
Liaison Officer to the Armed Forces High Command, and the Naval Staff
Quartermaster Division, Shipping and Transport Branch (see Telegram
1818).

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation :

According to reconnaissance reports of the 5th Air Force, on
27 tor. in the morning there were 8 steamers of different sizes under
Swedish fighter observation in the channel to Goeteborg harbor. One
exceptionally large ship was at the pier in the harbor. The 5th Air
Force assumes that these are the Norwegian ships returning from an at-
tempted breakthrough. The situation in Goeteborg was unchanged on 28
Mar. 3y order of the authorities, the German steamer INGRID TRABER had
to transfer to the inner harbor. According to the Naval Attache at
Stockholm, it will be impossible for the ship to follow the Norwegians,
since she has to get clearance for a definite time. It is not possible
to wait at Vinga because of the ice situation.

2. Own Situation ;
Nothing to report.

3. Situation Finland :

Finnish troops have occupied the northern part of Hogland.
According to statements from prisoners, there are 600 men on Seiskari
and 1,000 men on Lavansaari. There are 3 batteries on Seiskari, as
well as eight 4.5 cm. antitank guns on wheels. The shore is mined.

V. Merchant Shipping

At the end of 1941 the British Board of Trade declared occupied and un-
occupied France enemy territory, in accordance with the Trading with
the Enemy 'Ac t .

Mexico, Brazil, and Uruguay chartered the confiscated German, Italian,
and Danish ships to the U.S. They will probably be used primarily as
troop transports.

For details and further information see Brief Report No. 10/42 of the
Foreign Merchant Marine series of the Naval Staff Intelligence Division,

VI. Submarine Warfare

1. Enemy Situation :

3 steamers, among them the British steamer NALGORA (6,579
GRT), were located off the American coast. They reported sighting and
being attacked by submarines.

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28 Mar. 1942

CONFIDENTIAL

The Dutch tanker OZANA (6,256 GRT) was reported drifting on 27 Mar.
about 180 miles south of Halifax. 12 hours previously she had reported
being pursued by a submarine.

Freetown repeated as SSS message about a submarine and oil slicks ap-
proximately 50 miles northwest of the small Bahama Bank. The British
cable steamer NORSEMAN (1,844 GRT) reported sighting a submarine approx-
imately 360 miles northeast of Puerto Rico.

In the Mediterranean radio intelligence intercepted a message from a
British ship concerning a submarine sighted 65 miles northeast of Tobruk,

2.

Own Situation:

A number of welcome reports have been received from the American
coast: Submarine U "373" sank a 5,000 GRT steamer on 17 Mar., and
steamer THURSOBANK (5,570 GRT) on 22 Mar. Submarine U "160" sank an
armed coastal steamer or patrol vessel (15,000 GRT) on 27 Mar. Subma-
rine U "71" sank tanker NARRAGANSETT (10,339 GRT) on 24 Mar., and a
7,000 GRT tanker and probably a 4,000 GRT steamer on 26 Mar. Submarine
U "754" sank a 10,000 GRT tanker on 23 Mar.

See Situation Norway and supplementary situation report in War Diary,
Part B, Vol. IV for operations in the Arctic Ocean against convoy PQ
13.

For copies of the letters pertaining to these operations exchanged be-
tween the Naval Staff, Group North, and the Commanding Admiral, Subma-
rines, see l/Skl I u 657/42 Gkdos. Chefs, in War Diary, Part C, Vol. IV.

VII. Aerial Warfare

1. British Isles and Vicinity :

221 German planes flew missions during the day. 7 enemy planes
were shot down by our air defenses in daylight incursions.

In the central part of the Bay of Biscay 20 to 30 small vessels were
sighted, evidently in connection with the St. Nazaire operation. 1 of
the enemy motor gunboats that had escaped from St. Nazaire was annihil-
ated by forces of the Air Commander, Atlantic.

During the night of 28 Mar., 50 to 55 enemy incursions were made in
the areas around Skagen, Salzwedel, Uelzen, and Wilhelmshaven. The
heaviest attacks were made on Luebeck, where heavy damage was reported.
Furthermore 18 enemy incursions were made in northern France, 12 in
western France, and 11 in Holland.

2. Mediterranean Theater :

During the night of 27 Mar. strong enemy forces attacked
Benghazi, and lesser forces Derna and Mar tuba.

Throughout the day German planes attacked harbor installations and air-
fields on Malta. Lively enemy fighter activity. It was reported that
German dive bombers under fighter cover attacked Tobruk on 27 Mar. 2
merchant vessels were hit.

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28 Mar. 1942 CONFIDENTIAL

3. Eastern Front ;

8 Ju 88's attacked harbor installations and ships at Murmansk
from 1535 to 1715. The piers and presumably 1 steamer were damaged.

1 steamer of 6,000 GRT was sunk, and 1 steamer of 5,000 GRT badly damaged
in the convoy east of Bear Island.

VIII. Warfare in the Mediterranean

1. Enemy Situation :

At 1324 German air reconnaissance sighted task force H off
Ibiza on a 30° course, and at 1440 on a 120° course. The force is
evidently engaged in maneuvers at sea. The British motor gunboat brought
into Bene is marked ML 132. According to air reconnaissance, a convoy,
escorted by 4 destroyers, or 2 cruisers and 2 destroyers, was located
30 miles off the Marmarica coast on easterly course. The S0LAZ convoy,
proceeding in the opposite direction, was located by the radio inter-
cept service and air reconnaissance, likewise escorted by 4 vessels.

The S0LAZ reported to Tobruk at 1410 that she was under air attack 17

miles off Tobruk.

Another convoy was sighted leaving Alexandria on a northeasterly course
in the afternoon, escorted by 1 destroyer and 1 escort vessel. In the
evening 4 destroyers on easterly course were sighted by a submarine
northwest of Ras Azzaz.

British air reconnaissance reported 1 merchant vessel and 1 destroyer
on a northerly course at noon 100 miles northwest of Derna, evidently
returning from Tripoli to Italy. 1 submarine was reported off Marsa
Matruh in the morning, and 1 in the afternoon 65 miles northeast of
Tobruk.

Photo reconnaissance of Alexandria at 1318 showed the 2 battleships as
heretofore, as well as 3 DIDO-class cruisers, 1 antiaircraft cruiser
of the C class, 7 destroyers, 1 destroyer in drydock, 5 submarines, 6
small naval vessels, destroyer tender WOOLWICH, submarine tender NEEDWAY,
other auxiliary vessels, 1 Greek destroyer, 2 Greek torpedo boats, and
1 Greek auxiliary vessel, as well as 5 passenger ships, 6 tankers, and
33 steamers totalling approximately 210,000 GRT.

According to an agent report a convoy is ready to leave Alexandria,
evidently destined for Malta. On 27 Mar. 3 steamers, one of them a
very large one, passed through the Suez Canal in the direction of tne
Mediterranean.

2. Own Situation :

The 6th Motor Minesweeper Flotilla interrupted its voyage
from Messina to Trapani because of the weather.

The Naval Staff informs the German Naval Command, Italy, with copy to
the Commanding Admiral, Submarines, of its approval of planned submarine
operations in the eastern Mediterranean during the April new moon period
(see War Diary 25 Mar.). For copy of the plan and the approval see l/Skl
I u 648/42 Gkdos. Chefs, in War Diary, Part C, Vol. IV.

3. Situation Italy :

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28 Mar. 19^2 C ONFIDENTIAL

Enemy planes attacked Benghazi during the night of 27 Mar.
without causing major damage.

4. North Africa :

Tanker SATURNO and steamer ARGENTEA left for Tripoli, steamer
BROOK for Benghazi, and steamer PETRARCA left Benghazi for Taranto,
all separately and accompanied by 1 or 2 escort vessels. Coastal traf-
fic without special incidents.

5. Area Naval Group South :

Aegean Sea :

The Turkish steamer DUMLUPINAR arrived at Piraeus from Istan-
bul on 27 Mar. with grain for the Greek population.

, Black Sea :

Enemy Situation :

Nothing to report.

Own Situation :

The operations A and B in the gap in the minefield at Con-
stanta have been carried out according to plan. A river mine barrage
has been laid near Yalta.

)

IX. Situation East Asia

1. Enemy Situation :

According to the Vichy telegraphic service (Ofi) Chinese
forces crossed the border of Thailand at 6 spots in the face of stubborn
Japanese resistance.

According to a report of 26 Mar. from the Military Attache at Bangkok, the
supply dumps in Burma which were meant for Chungking had to be used in
Burma because of supply difficulties.

2. Situation Japan :

The same report confirms the Japanese advance on Tungu and
occupation of the Andaman Islands. According to a Dome! report from
Rangoon, the Japanese have begun minesweeping in the Irrawaddy Delta.
Japanese warships are said to have arrived in Rangoon already.

X. Army Situation

1. R ussian Front :

Southern Army Group :

Heavy fighting was In progress in the Sal to and Volchansk
areas, in addition to local fighting on other sectors of the front.

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Mar. 1942 CC. AL

Central Army Group :

Heavy partisan fighting is In progress in the Briansk area.
Lively eneny attacks near Yelnya, Gzhatsk, and northvest of Rzhev.
Heavy defensive fighting.

Northern Amy Group ;

The right wing of the Von Seydlitz Group gained additional
territory. Heavy defensive fighting is in progress in the Yamno area.
Eneny attacks were repulsed at Kholm and Denyansk.

2. Finnish and Norwegian Front :

Several strong eneny detachments advanced against the defenses
north of the Kestenga sector. Otherwise no change in the situation.

?. North Africa :

Lively scouting activity on both sides. Low-flying eneny
planes strafed the Via 3alcia at night without success between Derna
and Tnimi.

*************************

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CONFIDENTIAL

29 Mar. 1942
Sunday-
Items of Political Importance
India ;

In the presence of representatives of the press Cripps disclosed the sug -
gestions of the War Cabinet for the future form of government in India. .
The objective is to create a new "Indian Union" in the form of a domin-
ion. There can be no question of a new constitution until the cessation
of hostilities (not, however, as late as the signing of the peace treaty)
If the various provinces so desire, India can be divided into several
states with equal rights. The defense of India will, however, remain in
British hands. For details see Political Review No. 75, paragraph 2.

Britain evidently assumes, and rightly so, that she will
be able to maintain her position in view of the lack of
unity in India as the result of the far-reaching conces-
sions made to the various racial, confessional, and other
special-interest groups.

Bulgaria :

Reports from Sofia contradict the statements which claim that the visit
of King Boris is connected with Turko -Bulgarian complications. There
will be no such complications even if Bulgaria should join the Tri-
partite Pact while Turkey remained neutral.-

Prime Minister Filoff declared in Parliament that it is not possible for
Bulgaria to remain inactive in a war in which Europe's future is being
decided. The fate of the country is inextricably connected with that of
her allies. Bolshevism is the greatest enemy.

Situation 29 Mar. 1942

I. War in Foreign Waters

1. Enemy Situation :

According to as yet unconfirmed radio reports, .2 large British
warships, 2 aircraft carriers, several cruisers, and other vessels were
sighted at the Cape of Good Hope en route to the Indian Ocean.

2. Own Situation :

Radiogram 0006 instructs ship "10" to answer "yes" or "no" in
her next radio message whether the Naval Staff's assumption is correct
that the prisoners from the PAGASITIKOS are on the REGENSBURG.

Radiograms 2014 and 2150 inform ship "10" about the code names for the
routes to Japan and the new positions of route "Fussweg".

Radiogram 2205 informs ship "28" that German submarines are at the pres-
ent time operating along the West African coast.

Information on the enemy situation was sent via Telegrams 06l4, 1328,
1427, and 1600.

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29 Mar. 1942 CONFIDENTIAL

II. Situation Vest Area

1. Enemy Situation :

According to the radio intercept service, the force returning
home was 10 miles south of the Scilly Islands on a 700 course, speed
20 knots, at noon on 29 Mar. The ALBzi*NINGHTON, unknown to us, and the
ex-Folish torpedo boat KUJAVTK vent to the aid of the force.

At 0935 air reconnaissance sighted 6 motor gunboats on a southerly course
300 miles west of Brest; and at 1245 2 single steamers on the same
course 250 miles west of Brest.

Air reconnaissance reported for 28 Mar. sighting numerous vessels of
various types on different courses beginning at 0838 in quadrants EF
64, 55, 67, 57, etc. Most of the ships were destroyers and other light
naval vessels, as well as merchant ships. Group Vest points out, how-
ever, that the majority of the reports were made by inexperienced train-
ing crews. At any rate it can be concluded that considerable covering
forces stood ready to meet the vessels attacking St. Nazalre, or that
these ships represented a second wave in the attack. For details see
telegrams l/Skl 12079 and 12095 geh. in file "British Landing at St.
Nazaire on 28 Mar. 1942 .

2. Own Situation :

Atlantic Coast :

A very few enemy planes attacked Brest on 28 Mar. from 1020
to 1056 and from 1841 to 0227, and Lorient from 2236 to 2252. A few
bombs were dropped. The 5th Torpedo Boat Flotilla made a check sweep
in the "Uhunest area.

A number of additional reports have been received concerning the British
raid on St. Nazaire on 28 Mar. For copies see file in Var Diary. These
included an evaluation of the operational order found on the CAMPBELL-
TOWN, according to which the ship vas to proceed from Falmouth to point
Z at 46° 48' N, 02O 50 ' W, from where the attack was to be launched at
2230. She was to meet the covering forces at point Y at 470 02' N,
12o 42.5' V at 0600. 3 groups were to land at the following spots:
the old mole, the old entrance, and south of the dock gate. The maxi-
num time to be spent on land : 2 hours .

The captured documents were taken to the Naval Staff by plane. Other
reports concern primarily questions asked by the Naval Staff and the
Armed Forces High Command. Thus the Commanding Admiral, France reported
that the Admiral, Western France was not informed about the 3 destroyers
and 10 motor gunboats sighted on westerly course on the morning of 27
Mar. by a submarine (see War Diary 27 Mar.) until after the alarm was
sounded. The staff officer responsible has been reprimanded. The in-
cident itself would probably not have been changed if the Admiral,
Western France had been informed earlier; thus for example the Group
believed the force to be returning from a mining operation or to be en
route to Gibraltar, and the fact that the force was reported on a
westerly course was probably primarily responsible for this interpreta-
tion. At 'any rate the staff of the Group did not believe that the
vessels were about to attack the coast. In addition the Commanding Ad-
miral, France reports that the command organization functioned well,
although still closer coordination should be striven for. At the re-
quest of the 7th Submarine Flotilla, the radio beacons on Belle lie and
Ville-3t. Martin were functioning from 2335 to 0215. Light beacons were
not lit. The nets in front of the locks had been laid as ordered.

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29 Mar. 1942 CONFIDENTIAL

This explanation in addition to the measures taken by the harbor patrol
flotilla and the 5th Torpedo Boat Flotilla as reported on 28 Mar. make
it evident to the Naval Staff that all security measures which it was
possible to take with the forces available were taken.

Therefore it is all the more surprising that questions could arise of
the type put by Fuehrer Headquarters to the Commanding General, Armed
Forces, West, and answered by the Commanding Admiral, Group West. For
copies see l/Skl 7431/42 Gkdos.in the War Diary file.

It is very regrettable that there was evidently no one
in Fuehrer Headquarters who from the very beginning could
give a proper picture of the events to the Fuehrer and
the Armed Forces High Command; thus a completely inac-
curate impression which was very derogatory to the Navy
was created by the Army officers, with a corresponding
effect on the Fuehrer. Worse yet, great nervous tension
ensued, which certainly cannot Improve the situation.

For a report from the Armed Forces Intelligence Center, Anger concerning
interrogation of the prisoners of war see l/Skl 12146 geh. in the files.

Channel Coast :

The 4th PT Boat Flotilla laid mines on the southeast coast.
On 28 Mar. the "Prinz Heinrich" battery shot down 1 Spitfire, and Fort
Lapin shot down 3.

Special Item ;

The forces needed to set up a naval fortress brigade for the
defense of the Islands off the Atlantic coast as ordered by the Armed
Forces High Command (see War Diary 28 Mar.) were reported to the Armed
Forces High Command, with copies to the Naval Staff, the Army High
Command, the 7th Army, Group West, the Commanding Admiral, France, and
the 3rd Air Force. For copy see l/Skl 7^23/42 Gkdos. in War Diary,
Part C, Vol. X.

III. North Sea, Norway, Arctic Ocean

1. North Sea ;

Enemy Situation ;

According to air reconnaissance, there were large convoys off
Flamborough Head and Harwich on northerly course, and according to the
radio intercept service of the Air Force, there were additional convoys
off Harwich and Margate on southerly courses.

According to the radio intercept service, reconnaissance planes reported
a number of German convoys off the coasts of Jutland and southern Norway

According to Reuter, it is believed in London that the TIRPITZ, SCHEER,
and PRINZ EUGEN are in Trondheim, the SCHARNHORST in Kiel, and the
GNEISENAU in Wilhelmshaven.

Own Situation ;

During the night of 28 Mar. enemy air forces flew over the

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29 Mar. 1942 CONF AL

coastal areas of the German 5Ight, beginning at Tersohellin.^, in ?
broad front toward zhe east. Eombs were dropped at Hamburg,' Cuxhaven,
£nd Heligoland without causl Linage. A total of 12 planes were re-
ported shot down by night fighters and naval and Air Force antiaircraft
guns in the area of Group North.

ie operation KAISER as well as the operation of the 1st Minesweeper
Flotilla, which was to close the gap between the southwest barrage in
the Hoofden and the southwest corner. of the German declared area in the
North Sea, were postponed 24 hours because of the weather.

The 12th Subchaser Flotilla arrived from Norway at Wesermuende for ship-
yard repairs.

2. Norwa y :

Enemy Situation:

The Finnish Military Attache at '■holm, reported to the
Liaison Staff North from a reliable source that the danger of an enemy
landing in northern Norway has increased . London is said to have re-
ported to Stockholm that Russia is exerting heavy pressure on 3ritain,
with U.S. approval. Preparations are in progres The Norwegian ad-
vance guard is to be under the command of the Norwegian General Hansteen.
The present season is said to be the most favorable; later the long
days and the mud might mike operations more difficult. The 3ritish
count on the Swedes not permitting German troop transports through Sweden,
and they believe that the 2'e3ultant German- Swedish conflict will lead
to creation of the much discussed new front.

Reconnaissance planes of the 5th Air Force sighted a convoy of 25
steamers, 1 cruiser, 4 destroyers, and 2 escort vessels, headed for
Iceland, about 200 miles west of the Faroes. The 5th Air Force believes
that this Is a PQ convoy.

According to air reconnaissance In the Arctic Ocean there were 4 de-
stroyers or torpedo boats on northwesterly course approximately 75 miles
north of Cape Teriberski. At 0710 a convoy of 7 steamers was 130 miles
north of Vardoe on easterly course.

According to the radio intercept service, PC 13 was approximately 120
miles ncrtheast of Vardoe in the early morning. At 0824 a vessel in
the convoy reported sighting a submarine, and at 0532 and 0951* 3 north-
bound destroyers were reported. Another ship, coming from Murmansk,
presumably joined the convoy about noon.

Submarine U "378" and U "376" likewise located the convoy in the early
morning, and reported it at 0600 in quadrant AC 5726 on an easterly
course, consisting of 5 to 7 steamers with escort vessels to the south.

Own Situation :

The submarines maintained contact with the enemy until 1500.
The weather greatly hampered attacking. Air reconnaissance was impos-
sible during the day because of increasingly bad weather.

The 8th Destroyer Flotilla had an engagement with an enemy cruiser in
quadrant AC 5830 according to a report from the Admiral, Arctic Ocean
and Group North. Destroyer Z "26" sank in AC 5840 on the way back.
The Admiral, Arctic Ocean recalled the flotilla to Kirkenes. Group
North suggested that the destroyers and PT boats be held in immediate
readiness in the Varanger Fjord in case favorable opportunities for

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>

')

29 Mar. 19^2 CONFIDENTIAL

operations present themselves. The Group believes that It was correct
to recall the destroyers in view of the weather and the lack of air re-
connaissance, and in order to give the submarines freedom of action.

The Group expects the convoy to be in quadrant AC 8530 to 8350 early
on 30 Mar. There the submarines are to launch a new attack in case
contact is lost during the night. The Air Force is requested to rees-
tablish contact. (See Telegram 1714.)

There are as yet no reports of successes.

According to a report from the Admiral, Arctic Ocean, there has been a
heavy snowstorm in the operations area for the past hours. Visibility
is from 100 to 300 meters. (See Telegram 1720.)

The Naval Staff informs the Fuehrer, the Armed Forces High Command, the
Commander in Chief, Air, and the Army High Command, through the Naval
Liaison Officers, to this effect. For copy see l/Skl 745V42 Gkdos. in
War Diary, Part C, Vol. Ila.

The current operation Is interfering with the escort service in northern
Norway. During the day and evening of 28 Mar. enemy planes were active
over Kirkenes, Trondheim, Stavanger, Bergen, Kristiansand South, and
Oslo. No damage was reported.

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

Enemy air activity in the Holstein area in the night of 28 Mar. An
attempted attack on Kiel was not completed because for the first time
night fighters were used, and the city and shipyard were effectively
covered with a smoke screen. Luebeck, however, was heavily attacked
as an alternate target. (See Telegrams 1713 and 1843.)

It is suspected that planes dropped mines in' the southern part of the
Big Belt.

The Commanding Admiral, Baltic Countries suggests to Group North that
the islands in the Gulf of Finland be captured in a combined Army and
naval operation, provided the Air Force participates. Seiskari is to
be captured first, and subsequently Lavansaari. For copy see l/Skl
7446/42 Gkdos. in War Diary, Part C, Vol. III.

Since according to air reconnaissance it can be assumed that the
Russians have evacuated Tytersaari, the Commanding Admiral, Baltic
Countries has suggested to the 26th Army that the Island be captured at
once from Kunda, if necessary by parts of the Naval Coastal Artillery
Battalion 531, and the Estonian Company. For copy of a corresponding
report to Group North, see l/Skl 7429/42 Gkdos. in War Diary, Part C,
Vol. III.

V. Submarine Warfare

1. Enemy Situation :

According to an intelligence report from Spain a convoy con-
sisting of 9 ships, escorted by 2 destroyers and 3 corvettes entered

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29 Mar. 1942 CONFIDENTIAL

Gibraltar from the west during the night of 28 Mar. According to the
radio intercept service, subchaser SARABANDE reported a submerged sub-
marine, evidently in the Freetown area.

The radio intercept service intercepted reports from the American coast
that U.S. steamer PATRICIA SKAKEL (4,964 GRT), U.S. steamer CITY OF NEW
YORK (8,872 GRT), and the British steamer HERTFORD (11,785 GRT) vere
torpedoed. Canadian motor ship FLEUR DE LIS and U.S. tug SECURITY have
gone to the aid of the Dutch tanker OZANA which was reported adrift.

All U.S. ships in the West Indies were informed that beginning 1 Apr.
the entrance to the Gulf of Paria (Trinidad) will be dangerous because
of mines. All entrances to the Gulf will be closed, except for one con-
trolled channel. Sailing instructions for leaving the Gulf of Paria were
added.

According to an announcement of the U.S. Navy Department, 71 ships had
been sunk off the east coast and in the Caribbean Sea by 28 Mar. Be-
tween 1 Jan. and 2J Feb. 3 submarines were sunk and several others dam-
aged.

2. Own Situation ;

For submarine operations against convoy PQ 13> see Situation
Norway and the supplementary situation report in War Diary, Part B, Vol.
IV.

VI. Aerial Warfare

1. British Isles and Vicinity :

Our air defenses shot down 6 enemy planes during the day. For
reconnaissance report see daily situation. Single planes flew armed re-
connaissance missions during the night of 29 Mar.

2. Mediterranean Theater :

9 Me 109' s were damaged during an enemy air attack on the
Martuba airfield during the night of 28 Mar. Attacks on Valletta and
the Halfar airfield continued.

3. Eastern Front ;

For reports of reconnaissance in the Arctic Ocean see Situa-
tion Norway. Another destroyer and a 4,000 GRT steamer from the convoy
southeast of Bear Island were reported damaged on 28 Mar.

VII. Warfare in the Mediterranean

1. Enemy Situation :

Task Force H, evidently on the return voyage to Gibraltar,
was sighted by an Italian submarine at 2215 on a 2400 course 60 miles
northwest of Oran.

Air reconnaissance observed lively ship traffic in the Alexandria -

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>

Mar. 19^2 CONFIDENTIAL

Tobruk area. The convoy re sorted on 28 Mar. in Solium Bay on easterly
course was located at 0930 about 50 miles west of Alexandria, consisting
of 3 steamers, 2 destroyers, 1 torpedo boat, and 2 escort vessels, headed
for Alexandria. Further wesi. there were 5 destroyers and another force
consisting of 2 destroyers and 2 escort vessels on easterly course. Ac-
cording to the radio intercept service, these 2 escort vessels were
evidently repeatedly attacked by enemy planes at 1000 about 40 miles
northeast of Marsa Matruh. At the same time air reconnaissance located
16 ships of unidentified type directly off Alexandria, evidently not
moving.

2. Own Situation ;

According to a report from the German Naval Command, Italy,
torpedo or raining operations of the 3rd ?T Boat Flotilla will be carried
out during the full moon period only if the enemy situation Is such that
imi.iediate success is likely. The systematic mining of Malta will be re-
sumed on 8 Apr.

j5. Situation Italy ;

Enemy planes attacked Benghazi during the night of 28 Iter.
without causing damage.

At noon on 27 Mar. the Italian steamer 0RESTE (2,600 GRT) sank off
Cattaro as the result of a mine hit. In the harbor of Benghazi mine-
sweeping planes have so far detonated 2 magnetic mines.

k. Transport of Supplies to North Africa ;

An unsuccessful enemy air attack was made on steamer PETRARCA
while she was returning from Benghazi on the morning of 28 Mar. Other
transport traffic without special incident.

5. Area Naval Group South ;

Nothing to report.

VIII. Situation East Asia

According to a report of the Japanese Naval Staff, the Navy will carry
Army supplies to Rangoon beginning 25 Mar., following minesweeping op-
erations. South of Chijima an enemy submarine unsuccessfully attacked
a Japanese transport steamer on 25 Mar. The submarine was damaged by
a bomb and subsequently sunk by naval forces.

According to the radio intercept service, the Japanese are attacking
merchant shipping off Calcutta with heavy 4-engined bombers.

IX. Army Situation

1. Russian Front:

Southern Army Group :

Local en ' y attacks were repulsed by the Von Kleist Army

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29 Mar. 19^2 CONFIDENTIAL

Group. A German advance smashed enemy concentrations near Taganrog.
Also the 6th Army attacked a village near Salto east of Kharkov, and
threw the enemy back to the east. North of there an enemy tank attack
was halted by a counterattack. Also in the area of the 2nd Army a Ger-
man operation southeast of Kursk was successful.

Central Army Group :

East of Demenskoye the enemy succeeded in breaking through;
the breakthrough is being closed off. Southwest of Vyazma a German
counter thrust threw back the enemy who had penetrated our lines. North-
east of Gzhatsk the enemy succeeded, after several unsuccessful at-
tempts, in breaking through our lines with spearheads. The breakthrough
spot was sealed off. Heavy enemy pressure on our positions at the old
point of penetration west-northwest of Rzhev and south of there.

N orthern Army Group ;

Very lively fighting in the Kholm area. The southern wing
of the Von Seydlitz Group was able to take another village on the
Redvya River. At the defense position north of Lake Il'men the enemy is
making strong attacks in an attempt to force a supply line for his
units which are cut off there. Up to now we. have been able by using
all possible means to fight off these attacks, which are using tanks.
At the point of penetration south of Maluksa, enemy forces which have
just been brought up are threatening our positions by detouring around
them.

*

2. Finnish and Norwegian Front :

During the Finnish attacks on Hogland the enemy put up strong
resistance in fortified positions. The Island was taken. Finnish
planes pursued the remains of the enemy troops beating a retreat over
the Ice. An enemy group approaching the Finnish positions over the ice
on Lake Onega was annihilated. An attack is in progress against the
enemy who has advanced north of Kestenga.

5. North Africa :

No special Incidents.

**#♦***»*****■**«*********

- 296 -

CONFIDENTIAL

30 Mar. 19^2

Items of Political Im p ortanc e-
France ;

The fact that Laval had conferences not only with the Minister of the
Interior, Puchou and Admiral Darlan, but also with Marshal Petain, con-
firm that he is of late making efforts to establish closer contact with
the Vichy government.

Great Britain :

Foreign Minister Eden, in his talk of 29 Mar., emphasized especially
British efforts on behalf of Russia. The Russians have shown up Hitler's
boasting, and Britain has kept her promise to supply the Russians with
war material, although it is difficult to provide the necessary ships
and to protect them on their voyage through the Arctic Ocean. British
flyers are participating in the def.ense of Moscow, and there are British
tanks at the Russian front. Above all Britain baa olockaded Germany for
two and a half years, and has openeJ the supply route to Russia via
Iran. The present is the darkest time of thf 1 whole wir, and both sides
are preparing for the decisive mocent . Britain can be proud to have
survived alone until she was joined by her allies.

U.S.A. :

Official circles state that Roosevelt's order that deliveries to Russia
should take precedence over everything else was necessary since, con-
trary to the agreements, deliveries promised for March and April will
not be available until the end of June at the earliest.

Conference on the Situation with the Chief, Naval Staff

I. For report of the Chief, Operations Branch, Naval Staff Operations
Division concerning the transfer of the 3 Dutch gunboats to the Nor-
wegian area, see 1/Skl I op 5708/42 Gkdos. in War Diary, Part C, Vol.
Ila. The Chief, Naval Staff agrees with the suggestion.

II. The Chief, Naval Staff Communications Division reports on the fol-
lowing matters:

a. Technical effects of the transfer of the headquarters of the
Commanding Admiral, Submarines.

b. Establishment of teletype connections between Rome and Athens.

c. Installation of radar equipment on the coasts. Such equip-
ment must be set up not only from the standpoint of coastal artillery,
but also so as to control the largest possible sea area. Therefore the
equipment should be given to the batteries only temporarily in case of
need.

III. The Chief, Naval Staff Quartermaster Llvision reports that Captain
Schubert has been sent to St. Nazaire In order to gather information on
the spot concerning the raid of 28 Mar.

The Chief, Naval Staff directs that the renewed request of Vice Admiral

- 297 -

30 Mar. 19^2 : ::;?:. :-::::.--_

_e::"i.-.g v:r. Sitter, that the {Shipping Office be placed under tr.e Navy
for the duration of the war be refused.

An Investigation is to be made of Minister S i communication concern-
ing insiu ent cc a Lion between the Bavy and the Organization Todt
in construction of fortifications on the Channel islands. The Chief,
Baval Staff orders that the : e handled at once In the manner sug-

the Chie: , Na- caff Quartermaster Division, which would
prove Speer's assertions i act.

IV. The Chief, Naval Cons- u reports about Minister
Speer's' demand that the capacity of the shipyards be increased and about
his conference - :i-=.=rat Blohm concerning cooperation with the Bavy
in the Central Committee for the Shipyard Industry, in which he empha-

reaeln the contracting party. The Chief,
Raval Ordnance Divi _ .ereupon - : ints out the character of this com-
mittee, which is in charge net only of naval but also of merchant shir
::cs:ru::::-. 1: :..r Navy »ere the sole contracting party, it vculd
also be responsible for merchant ship construction. In this connection
attention Is called to the request of Vuelfing von Ditten.

The Chief, Haval Staff decides that for the present matters are to be
arranged as the Chief, Haval Construction Division agree! vith Staat3rat
Blohm.

V. The Chief, Haval Staff directs in connection with the Arned Forces

High .": — -r.c order to set up a naval brigade that, in view of the per-
sonnel reo.uired, Captain Rollmann's report concerning his investigation
:..:_:; ":e avaiced. If r.ecessary, the Chief, Naval Staff has decided to
have Admiral torschall go through all naval offices to see what personnel
is dister. sable, after he has finished his duties as deputy to the Com-
rardirg Admiral, S-rcup South.

VT. The Chief, Naval Ordnance Division reports that 100, OOC to 200,000
rounds of ammunition from naval stocks v 1 1 i be made available to the
Army each month. He reports further on the intention of Minister Speer
to set up a central ordnance commission and a central construction com-
mission within the arnaments Industry which will decide about construc-
tion and testing of equipment. The ordnance commission will be respon-
sible for deciding whether eouipment is ready for operational use. The
Bavy has protested this plan.

A further report is made on the additional Fuehrer directive to the

. : ur_ed Forces ^a^ing unautrtcrizei possession of rav ccaterials a pur.isr.acle
offense .

VTI. The Ha al .-.ttache Division reports on the Japanese plan to send a
submarine to Bordeaux or 1-crient.

VIII, Thr ef, Operations Branch, Haval Staff Operations Division re-
ports that the naval offices have teen ordered to report directly to
the Ar-ed Force* Xigr rruuar.l via the :crcmar.ding leneral, Arned Screes,
Vest, because of the incident at St. Hazaire on 28 Mar. This measure

= an absolutely incomprehensible concern and nervousness at the
Armed Forces High Command and at Fuehrer Headquarters. The Haval Staff
has ordered that all reports in this matter be channelled through Group
West. The Chief, Haval Staff agrees.

In the same connection, the Chief of Staff, Haval Staff telephoned
S-er.eral Soil and expressed surprise about the entirely unjustified and
Inaccurate opinion which has been expressed in the Armed Forces High
Command concerning the state of preparedness of the Bavy in general, arri

- 298 -

30 Mar. 19^2 CONFIDENTIAL

the success achieved by naval defenses at St. Naziare in particular.

IX. Because of the enemy surprise attack on St. Nazaire, the Chief,
Naval Staff once more orders the Commanding Admiral, Norway to close
the Trondhelm Fjord hermetically against enemy submarines and light
naval forces.

Situation 30 Mar. 19*12

I. War in Foreign Waters

1. Enemy Situation ;

North Atlantic ;

3 British destroyers, among them the LOOKOUT, entered Ponta
Delgada on 28 Mar.

Indian Ocean ;

The Italian Consul in Lourenco Marques reported that there are

4 British cruisers and. 4 submarines in Durban. According to the radio

intercept service, the Norwegian steamer THORDES reported a suspicious

vessel 500 miles south of Bombay. Another QQQ signal was intercepted
from a Danish ship in the Mozambique Strait.

P&.cific Ocean ;

According to press reports, the U.S. has taken over 3 modern
airfields at unnamed spots on the Mexican coast.

2. Own Situation ;

Radiogram 2132 contains felicitations of the Commander in
Chief, Navy to 3hip "10" on the occasion of her first success.

•

The Japanese Navy has acknowledged receipt of the information that the
operations area of German auxiliary cruisers is south of 10° S and west
of 80° E. Since Japanese submarines are to operate in this area begin-
ing with the middle of April, the Japanese Navy asks through the Naval
Attache, Tokyo for detailed information on German operational plans,
and promises to supply similar information concerning Japanese submarine
operations.

There are no objections against handing over prisoners to ships en route
to Japan and routing prizes to Japan. Permission is given to overhaul
German auxiliary cruisers in Japanese shipyards, and an attempt will be
made to make a similar arrangement for shipyards in conquered territory.

The Attache is asked to inform, the Japanese Navy that it is impossible
to transmit detailed operations plans, since the auxiliary cruisers
must have freedom of operations in the area assigned, and furthermore
supply steamers must be stationed in areas where the weather is favor-
able. Therefore the Naval Staff suggests that Japanese submarines
should be used to supplement the auxiliary cruiser operations only
north of 10° S and east of 80° E. In case the Japanese Navy insists on
operations in a larger area, the Naval Staff suggests that Japanese
submarines operate in a 300 mile strip along the coasts of Africa and
Madagascar, which the German auxiliary cruisers would avoid.

- 299 -

30 Mar. 1942 CONFIDENTIAL

The Naval Staff expects good results from auxiliary cruiser operations
in the Indian Ocean in the operations area agreed upon, supplementing
operations of the Japanese Navy in the northern Indian Ocean. If the
operations area is limited because of submarines, the auxiliary cruisers
could not operate successfully. The Naval Attache, Tokyo i3 informed
to this effect, and is directed to call the attention of the Japanese
Navy to possible operations in the Arabian Sea, since these would affect
supplies to the Bussian front.

The Japanese Attache in Berlin has been informed of the above.

For copy of telegrams to and from the Naval Attache, Tokyo see l/Skl
7401/42 Gkdos. and 7501/42 Gkdos. in War Diary, Part C, Vol. XV.

The Naval Attache, Tokyo is informed for his own information in connec-
tion with the voyage of a Japanese submarine to Germany that ship "10",
the BEGENSBUBG, and the TANNENFELS are en route to the Indian Ocean,
and ship "28" is en route to the South Atlantic. Since supply steamers
are stationed in these waters, and also blockade-runners are en route,
probably the Japanese submarine will have to be asked not to attack any
ships during the greater part of her voyage. The Japanese Naval Attache
at Berlin has been informed. For coDy of the telegram see l/Skl I opa
7480/42 Gkdos. in War Diary, Part c/Vol. I.

Another telegram orders the Naval Attache, Tokyo to have the Japanese
submarine coming to Germany take along the following raw materials:

a. Mica 40 tons

b. Industrial Diamonds

(300,000 carats) 70 kg.

c. Molybdenum 35 tons or
Ferro- Molybdenum 55 tons

d. Shellac 20 tons or
Stick lac 30 tons

e. Platinum 100 kg.

f. Quinine base or
Quinine sulphate or

Quinine hydrochloride 15 tons

g. Iodine 5 tons

The items are listed approximately in the order of importance. The
entire cargo space should be utilized fully. If the cargo space has
been overestimated the quantities should be reduced equally. If one
of the items cannot be obtained the others should be increased corres-
pondingly in equal amounts. Platinum and industrial diamonds are to be
given preference.

The Naval Attache should ask the Japanese Navy to help in obtaining
the raw materials, pointing out that the German Navy will deliver equip-
ment. Payment will be worked out with the Wohltat delegation.

The raw materials have been requested by the War Economy and Armaments

- 300 -

)

50 Mar. 1942 . CONFIDENTIAL

Division of the Armed Forces High Command. The Economics Ministry and
the Japanese Naval Attache in Berlin have been informed.

For copy see l/Skl I opa 7500/42 Gkdos. in War Diary, Part C, Vol. IX.

Radiogram 1417 informs the RIO GRANDE about the German submarine which
is to meet her at point "Rotfeder" and escort her home, and about sail-
ing instructions.

Information on the enemy situation was sent via Radiogram 1849.

II. Situation West Area

1. Enemy Situation :
Nothing to report.

2. Own Situation ;

Atlantic Coast ;

See l/Skl 7466/42 Gkdos. in file "British Landing at St.
Nazaire on 28 Mar. 1942" for the answers by the Commanding Admiral,
France to the following questions of the Operations Staff, Armed Forces
High Command transmitted via the Commanding General, Armed Forces West
and Group West:

a. How was it possible to get through the net barrage?

b. Are there barrages at other submarine bases, and if so
what kind?

The Commanding Admiral, France, who went to St. Nazaire on 30 Mar.,
made a preliminary report to Group West, the Commanding General, Armed
Forces, West, the Naval High Command, the Admiral, Channel Coast, and
Fuehrer Headquarters to the effect that it is necessary to reinforce
the land and coastal defenses, air reconnaissance, and naval security
forces. For copy see l/Skl 7471/42 Gkdos. in War Diary files. The
Naval Staff transmits to the Operations Staff, Armed Forces High Command
and the Army High Command the personal report of the Commanding Admiral,
France concerning the security measures in effect at the time of the
British raid, the successful' defense, the information obtained so far,
and measures already put into effect. For copy of the report see l/Skl
I West 7497/42 Gkdos. in the War Diary file.

This report of the Commanding Admiral confirms fully the impression re-
ceived from the first reports that defenses against the enemy attack
functioned excellently. Absolutely no negligence or fault of command
authorities can be feund. The success achieved by the enemy was slight,
that of our defenses great. The fact that the enemy could make a sur-
prise attack that penetrated so deeply into our coastal defenses is
simply due to the lack of naval and air forces and other defense equip-
ment. This lack has been pointed out often .enough, and the Navy is
not in a position to eliminate it as things stand at present.

All the more surprising, therefore is the letter which Field Marshal
Keitel 3ent to Field Marshal Rundstedt, according to which the Fuehrer
is demanding an investigation to establish who was responsible for the
fact that the enemy ships were able to pass unnoticed the defense instal'

- 301 -

30 Mar. 19^2 CONFIDENTIAL

lations and "barrages, and which inquires whether court-martial proceed-
ings have been or will be instigated against the responsible commander.

On the basis of the report of the Commanding Admiral, Group Vest, the
Commanding General, Armed Forces, Vest, who together with the former is
going to inspect St. Nazaire on 31 Mar., in the meantime reported to the
Chief, of Staff, Armed Forces High Command that in his opinion it is not
necessary to instigate proceedings against anyone. It seems to him that
adequate defense is impossible in' view of the Navy's shortage of recon-
naissance and defense equipment, as is the situation with the Army and
the Air Force likewise. Moreover, he stated that command at St. Nazaire
during the defense operation was in order. The Chief, Naval Staff is
informed about this exchange of telegrams between the Armed Forces High
Command and the Commanding General, Armed Forces, Vest through copies
transmitted by Group Vest, to which Field Marshal Rundstedt had added
the following questions, stating explicitly that he had been instructed
to do so:

a. Vhat kinds of naval reconnaissance, defense, and barrage
equipment would have been suitable to prevent the enemy vessels from
entering?

lacking'

b. Vhat equipment of this type was available, and what was

c. Vhy was this equipment not available?

d. Vas such equipment requested? Vho requested it, and who
turned down the request?

e. If the equipment was not requested, why? Vho would have
been responsible for requesting it?

For copy of the telegram, see l/Skl 7525/^2 Gkdos. in the Var Diary file

The Chief, Naval Staff must understand the above order and questions of
the Armed Forces High Command as an indirect attack on his own person.
He is disagreeably surprised by the procedure adopted by Field Marshal
Keitel, and is not going to accept the situation without action.

According to a report from Group Vest, tne small lock in St. Nazaire
next to the Normandy lock was damaged, evidently by a delayed explosion
at the outer gate, in the late afternoon. Evidently this explosion
caused shooting to break out, the origin of which has so far not been
determined, and which lasted until 2100. The Army has declared a state
of siege for St. Nazaire, and a state of emergency for Nantes. All
was quiet at St. Nazaire by midnight. The Commanding Admiral, France
ordered increased readiness for the entire area, since it seemed not
entirely out of the question that the new fighting in St. Nazaire might
be a signal for the outbreak of disturbances in the interior.

Channel Coast :

During the night of 29 Mar. the 4th PT Boat Flotilla laid
mines according to plan along the convoy route. For brief report see
Telegram 1100. The vessels were able to evade British patrol vessels,
which were using German recognition signals.

During the night of 30 Mar., the 2nd PT Boat Flotilla laid mines north
of Cromer.

Special Items :

- 302 -

30 Mar. 1942 CONFIDENTIAL

By telegram Group West requests that the 5th Torpedo Boat
Flotilla be left in the west area until the ice situation permits it to
undertake shooting practice at Flensburg and that at that time the Naval
Staff, and not the Torpedo Inspectorate, recall the flotilla.

With regard to the 3 Dutch gunboats, only 2 of which are so far in ser-
vice, while the 3rd will follow in May 1942, the Naval Staff decides that
these vessels are to remain at the disposal of Group North for the time
being in order to be used for convoy and anti-submarine operations in
Norway in view of their range and equipment. See l/Skl I op 5708/42
Gkdos. in War Diary, Part C, Vol. Ila for copy of the telegram to
Groups West and North, as well as information sent to the Naval Staff
Quartermaster Division, with the remark that the Commander in Chief,
Navy wishes to have the 3 gunboats placed under the administrative com-
mand of .the Commanding Admiral, Norway, and also the memorandum of the
Naval Staff Operations Division which led to this decision.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

Enemy Situation ;

Some air reconnaissance during the day, more in the evening,
concentrating on the west coast of Norway. According to the radio in-
tercept service of the Air Force, there was lively convoy activity on
the southeast and east coasts.

Own Situation ;

The mine operation in the Hoofden has gotten under way ac-
cording to plan. Convoy traffic proceeded without special incidents.

2. Norway :

Enemy Situation :

The convoy reported on 29 Mar, consisting of 25 steamers
headed for Ireland was located again by reconnaissance planes of the
5th Air Force at noon.

In the Arctic Ocean, reconnaissance planes sighted 2 destroyers and 2
steamers on westerly course at 1707 about 40 miles north of Klldin.

4 German submarines located convoy PQ 13 in the- course of the afternoon
north of Teriberski, and maintained contact up to 10 miles from the
coast.

Own Situation ;

See preliminary short battle report based on the oral statements
of the commander of destroyer Z "25" and the 1st officer of destroyer
Z "26" for the experiences of the 8th Destroyer Flotilla on 29 Mar.

On the evening of 28 Mar. the flotilla picked up 61 survivors of a
steamer sunk by the Air Force shortly before, thus confirming this
first success against convoy PQ 13. On 29 Mar. between 0145 and 0155 it
sank the steamer BATEAU of 10,000 GRT by gunfire and 1 torpedo. The
ship was proceeding with 18 other steamers from New York via Reykjavik

- 303 -

30 Mar. 1942 CONFIDENTIAL

and was loaded with tanks and ammunition. 7 survivors of 5 different
nationalities were captured. After submarine U "376" reported the po-
sition of the convoy at 0600 in quadrant AC 5720, with the escorts to
the south, the flotilla hauled off to the northwest in order to attack
from the north. During low visibility and snow flurries, destroyer Z
"26" located a target by radar, and at ; encountered an enemy cruiser
of the City Class, which opened fire at a distance of 3,000 to 4,000 meters
and shot a b-fan. Z "26" was severely hit at once by gunfire, but out-
maneuvered the torpedoes. Z "24" shot a 7-fan at the cruiser; probably
1 of the torpedoes hit the target. Destroyers Z "24" and Z "25 lost
contact with Z "26" in the snow flurries while the latter was outman-
euvering the torpedoes. Subsequently Z "26" had further encounters
with 1 large and later 1 smaller enemy destroyer, and suffered additional
damage as well as heavy casualties. The intention to break through to
Honningsvaag could not be carried out. At 1125 Z "24" and "25" reestab-
lished contact with their hard-pressed flotilla leader, chased off the
enemy destroyer by gunfire, and took aboard 88 survivors, 7 of them of-
ficers including the flotilla commander and the captain, as well as 23
dead, before Z 26" sank. 8 more members of the crew were picked up by
submarine U "376". According to statements of prisoners, convoy PQ 13
was escorted by 2 cruisers and 4 destroyers. These were later joined
by 4 destroyers from Murmansk, according to air reconnaissance. De-
stroyers Z T, 25" and "24" returned to Kirkenes at 1915 on 29 Mar., with-
out further encounters.

For coDy of the report see l/Skl 7467/42 Gkdos: in War Diary, Part C,
Vol. Ila.

Group North was able to report further successes by submarines on the
evening of 30 Mar. In the course of the morning submarine U "376" tor-
pedoed 1 tanker (5,000 GRT) from the convoy, U "435" a tanker of 6,000
GRT, and U "456" a steamer of unknown size. The 3 successful submarines,
as well as submarine U "454", which once more located the enemy in the
afternoon without being able to attack, reported effective defense by
the destroyers and depth bombs. For details see Submarine Situation.

Thus 5 enemy ships in all, carrying most valuable war
materiel, were sunk in cooperation between the destroyers,
submarines, and Air Force. However this success does
not make up for the loss of Z "26" with a large part of
her crew, especially unfortunate considering the few de-
stroyers available. Ve are forced, ungratifylng as this
step may be, to hold back our few surface forces even
more during conditions such as prevailed in this case,
when due to the weather there was no air reconnaissance
and it was impossible to gain an absolutely clear pic-
ture of the number of enemy forces and their positions.
Furthermore the fact that the enemy cruiser immediately
had the range of our destroyer is remarkable and needs
explanation. Evidently the cruiser made the very best
possible use of her radar equipment.

According to the situation report of the Commanding Admiral, Norway,
minesweeper M "5608" sank following an explosion the evening of 29 Mar.
during minesweeping operations in the entrance of Petsamo Fjord. 8 men
are missing. In the night of 28 Mar. enemy planes dropped 3 torpedo-
like missiles with parachutes, one of which exploded on land. On 30
Mar. an enemy plane strafed a convoy off Feiestein.

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30 Mar. 19^2 CONFIDENTIAL

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation ;

After evaluation of the aerial photographs of 19 Mar., the
1st Air Force reported as follows on the probable combat readiness of
the Russian Baltic Sea fleet:

a. On the OKTYABRSKAYA REVOLUTSIYA there is a roof over the
bow, which permits the assumption that the forward triple turret is not
yet repaired.

b. The bow of the KIROV is evidently entirely repaired.
3 torpedo boats and 36 submarines were seen on the same photograph.

c. The forward and aft 20.3 cm. turrets on the ex-LUETZOW
are evidently ready for combat. The two high turrets midships still
have no barrels.

2. Own Situation :

The remaining part of the SCHLESIEN convoy has been freed from
the ice. Transports according to plan.

The Admiral, Baltic Countries has refused to agree to the request of
the 26th Army High Command for the 531st Naval Coastal Artillery Bat-
talion, since the Battalion is urgently needed at other sectors of the
Eastern Front, considering the intended occupation of the islands, and
since other orders have been issued. (See Telegram 1305* )

The 531st Naval Coastal Artillery Battalion is absolutely
not equal to heavy commitment on the Eastern Front, and
such commitment thus cannot be justified.

In agreement with plans of the Northern Army Group and with the view-
point of the Admiral, Baltic Countries, Group North thinks it opera-
tionally important to capture the Finnish islands during the ice period,
considering the time after the ice has thawed for cutting off the eastern
part of the Gulf of Finland. (See Telegram 1525.)

The Naval Staff is of the same opinion.

V. Submarine Warfare

1. Enemy Situation :

An SSS signal from an unidentified steamer was intercepted
from ho miles northeast of Cape Hatteras. The U.S. steamer MANA (3>283
GRT) in the Arctic Ocean reported a submarine attack at 1025 approxi-
mately 190 miles north of Kanin Nos.

2. Own Situation :

For operation against convoy PQ 13 see Situation Norway and
the supplementary situation report it War Diary, Part B, Vol. IV. In
the same place are reports of German submarines in the North, West, and
South Atlantic. No reports were received from the West Indies and the
Mediterranean.

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JO Mar. 1942 CONFIDENTIAL

VI. Aerial Warfare

1. British Isles and Vicinity ;

The 3rd Air Force reports that a transport vessel of undeter-
mined size was sunk on 28 Mar. 120 miles west of St. Nazaire. The 3rd
Air Force assumes that she was a De Gaulle ship.

For reconnaissance reports see Enemy Situation North Sea and Norway.

10 planes flew reconnaissance missions during the night of 30 Mar. for
Group North. There were 2 enemy incursions in the same night into
Reich territory as far as Warsaw and Radom and 17 incursions into the
Aalesund-Trondheim area. 24 bombs were dropped.

The Air Force Operations Staff ordered the He 115 planes of the 2nd
Squadron of Group 906 withdrawn. Thus the forces remaining at the dis-
posal of the Air Commander, Atlantic are as follows:

The 3rd Reconnaissance Squadron (Ju 88) of Group 120 in Lannion
The 5th Squadron (Arado 196) of Group 196 in Hourtin and Brest
Group 106 (Ju 88) in Dinart (St. Malo)

2 squadrons (FW 200) of Group 40, III Bomber Wing in Rennes, with
Bordeaux as jumping off place.

2. Mediterranean Theater :

No special reports from the Commanding General, Armed Forces,
South.

3. Eastern Front :

1 vessel, evidently a submarine tender, was sunk during an at-
tack on Novorosslsk on 28 Mar. On 29 Mar. a 4,000 GRT steamer was
damaged by aerial torpedo and beached in the Novorossisk area.

Air reconnaissance over Kerch, Novorossisk, Tuapse, Poti, and Batum on
28 Mar. did not obtain any additional information.

VII. Warfare in the Mediterranean

1. Enemy Situation :

Task Force H returned to Gibraltar from the east.

Air reconnaissance sighted a cruiser on a westerly course evidently
coming from Malta in the central Mediterranean 50 miles off Cape de
Garde.

No enemy reports were received from the eastern Mediterranean. At 0445
Alexandria sounded a submarine warning for the area 80 miles northwest
of the harbor.

2. Situation Italy :

An enemy submarine sank steamer GALILEA (8,040 GRT) with ap-
proximately 1,000 men and equipment of the Julia Division at 2350 on
28 Mar. off Antipalos from a convoy en route from Patras to Brindisi.

- 306 -

30 Mar. 1942

CONFIDENTIAL

5. Transport of Supplies to North Africa :

No special incidents.

According to a report from the German General at Rome to the Army High
Command, it is the aim of the Italian Deputy for Construction to increase
the unloading capacity of Benghazi to 3,500 tons per day, permitting
7 3hips to he handled simultaneously. The necessary installations were
to he completed by June. However, this will probably not be possible,
since the necessary building material and unloading equipment cannot be
delivered in time because of the transport situation. In Derna, only
2 motor sailing vessels can dock at the present time. By building a
suspension bridge to a ship sunk in the harbor the unloading capacity
can be Increased.

4. Area Naval Group South :

Aegean Sea :

Nothing special to report.

Black Sea :

Enemy Situation :

According to aerial photographs of the main harbors on 28
Mar., the total of merchant ships Is estimated at 1,400,000 GRT, and
tankers roughly at 30,000 GRT.

Own Situation :

No special incidents.

Since the entire 601st Naval Coastal Artillery Battalion is needed for
the defense of the Crimea, Group South reports that the 1st Panzer
Army (Von Kleist) and Naval Shore Command Ukraine need one naval coastal
artillery battalion without guns, but with all other equipment, to
occupy guns at important points along the Sea of Azov between Berdyansk
and Taganrog; at the very least, however, a cadre of artillerists with
training In the use of these guns. (See Telegram 2040.)

The Naval Staff Quartermaster Division will handle the matter.

VIII. Situation East Asia

The Military Attache at Bangkok confirmed on 28 Mar. that Tongoo was
taken. In order to incite local revolts, the Japanese dropped propa-
ganda troops by parachute behind the enemy lines.

Both sides launched air attacks in the South Sea Islands,
population of Port Moresby has been evacuated.

The white

According to the Naval Attache In Tokyo, approximately 8 Russian steamers
were stopped and released after search by the Japanese between
Vladivostok and Petropavlovsk between 3 and 15 Mar. The cargoes con-
sisted mainly of coal.

- 507 -

30 Mar. 19^2 CONFIDENTIAL .

IX. Army Situation

1. Russian Front ;

Southern Army Group :

There were strong enemy attacks only west of Slavyansk, which
had to be broken off after heavy losses.

Central Army Group :

Northwest of Yukhnov an enemy attack in regimental strength
broke through our line. Fighting was especially violent near Yelnya,
where both sides suffered heavy losses. The enemy once more unsuccess-
fully attacked the former point of penetration northwest of Rzhev in a
front 17 km. wide, after a strong preliminary artillery barrage. Enemy
paratroopers landed southeast of Nevel.

Northern Army Group :

The commander in chief of the enemy's northwest front has per-
sonally taken over command in the sector opposite the Von Seydlitz Group,
and therefore stubborn resistance may be expected. The Von Seydlitz Group
was able to advance the southern wing several kilometers east across
the Redvya River into wooded terrain. The northern wing is ready for a
new attack. Further large-scale combat activity took place near Yamno,
Maluksa and Lyuban.

2. Finnish and Norwegian Front :

There was local fighting on the northeast front (Army Command,
Lapland) at the northern wing of the Loukhi sector and in the Kandalaksha
sector.

3. North Africa :

During the night of 29 Mar. enemy planes made low-level attacks
on the bases south of Tmimi. No losses.

*************************

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CONFIDENTIAL

31 Mar. 1942

Items of Political Importance

India ;

According to the first reports about the reaction to the Cripps propo-
sals, the Congress Party objects decidedly to the intended solution of
the Moslem question. Gandhi is also supposed to have protested sharply.
An explanatory radio address by Cripps brought no new viewpoints.

Turkey :

The Foreign Office is of the opinion that the winter campaign in Russia
is practically ended without having brought the Russians the strategical
success they desired. The disappointment in Moscow is said to be great.

The constant Russian advance into Iran and her plans for setting up an
independent Kurd or even Iranian Soviet republic have caused great
anxiety in important circles in Ankara, and have injured perceptibly the
prestige of Great Britain, which country is said to be unable to prevent
this development, so detrimental to Turkey.

U.S.A. ;

At the opening session of the Pan-American Defense Committee, Knox
stated that the measure most urgently needed is control and protection
of inter-American shipping against enemy submarines. It must be ex-
pected that naval operations will extend to the South Atlantic and the
Central Pacific. The U.S. Chief of Staff Marshall stated that all for-
ces will be concentrated in the near future for an important offensive.

The Americans claim that the U.S. is producing more merchant ships and
tankers than all of the rest of the world together. Instead of the 45
shipyards with 170 slipways as in 1941, at present there are 64 ship-
yards with 480 slipways in operation. At the present time 2 ships are
being finished each day, and soon there will be 3. By the end of 1943,
not, 18,000,000 but 20,000,000 to 22,000,000 tons will have been built.

The Pacific War Council will meet in Washington for the first time on
1 Apr., and representatives of Australia, New Zealand, the Netherlands,
Britain, and the U.S. will participate. Roosevelt stated that the
Council in Washington will work in close contact with the corresponding
organization in London.

According to a report from a diplomatic source, production in the U.S.A.
is greatly hampered through a shortage of raw materials and labor.
Therefore it has been ordered to channel all raw materials into immediate
war production for the next 6 months, and to postpone the planned ex-
pansion of armament factories.

The Chief, Naval Staff is on an official visit to Wilhelmshaven, and is
therefore not in Berlin.

- 309 -

31 Mar. 1942 CONFIDENTIAL

Situation 31 Mar. 1942

I. War in Foreign Waters

1. E nemy Situation :

South Atlantic :

According to an agent report of 18 Mar. from Freetown, no U.S.
troops had arrived by that date. However, 4 ships with war materiel had
arrived; part of the cargo is being stored, and part is being sent on
to the Sudan for De Gaulle. There were 1 U.S. gunboat, 2 destroyers,
and the cruiser CINCINNATI in Freetown. A convoy was expected from
South America, which was to proceed from Freetown escorted by the DAUNT-
LESS and the CHARYBDIS.

According to a report from the Japanese Naval Staff, the disposition of
the U.S. Fleet was unchanged on 24 Mar. Only in South Africa there are
now 2 light U.S. cruisers instead of 1. So far heavy cruiser INDIANAPOLIS
and light cruiser BROOKLYN had been reported in Durban.

2. Own Situation :

Radiograms 1742 and 2047 contain sailing instructions for the
TANNENFELS and the REGENSBURG for their voyage to the Indian Ocean, and
information to this effect to ship "10".

Radiograms 0347 and 0052 inform all ships In foreign waters about the
positions of the RIO GRANDE and the FUSIJAMA according to dead reckoning,
as well as about ships sighted during the voyage of the 0S0RN0. Radio-
gram 1448 contains information about the position of the Swedish Red
Cross ship SICILIA at 4oo N, 73° W on 27 Mar., and about the return of
Italian citizens from Italian East Africa, with the approval of Britain,
on the Italian ships SATURNI0, VULCANIA, DUILI0, and GUILI0 CESARE, in-
cluding markings agreed upon. These ships will leave Italy via the
Atlantic for Jibuti between 2 and 9 Apr., and will be refueled by tankers
ARC0LA and TAIGETE, which are lying ready in the Canary Islands. German
ships have been informed not to molest these ships. Their routes will
be made known later.

Information on the enemy situation was sent by Radiograms 0501, 0713, and
2154.

For material for a conference with the Japanese Liaison Officer at the
Naval Staff on 31 Mar. concerning operations of German auxiliary cruisers
and Japanese submarines in the Indian Ocean (see War Diary 30 Mar.) see
l/Skl I opa 761 9/42 Gkdos. in War Diary, Part C, Vol. XV.

II. Situation West Area

1. Enemy Situation :
Nothing special to report.

2. Own Situation :
Atlantic Coast :

7 ground mines were swept off Lor lent since 13 Mar. by Ju 52 ! s.

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31 Mar. 1942 , CONFIDENTIAL

In St, Nazaire a British weapons cache was discovered on 30 Mar. accord-
ing to a report from the Admiral, Western France. So far 80 civilians
have "been arrested in connection with the shooting of 30 Mar. and a num-
ber of persons have been shot following court martial proceedings. The
Army is in charge of quelling the disturbances. At 0300 everything was
under control. The incidents of 30 Mar. at St. Nazaire have not af-
fected submarine warfare.

The damaged tankers PASSAT and SCHLETTSTADT are blocked in the Normandle
lock. 3 officers, among them the captain of the SCHLETTSTADT, and 39
men are missing from the 2 tankers.

More detailed reports must be awaited.

After the return of the Chief, Naval Staff from Wilhelmshaven, the
Naval Staff submitted to him the draft of a letter to be sent to the
Armed Forces High Command. For copy see file "British Landing at St.
Nazaire on 28 Mar. 1942".

Channel Coast ;

The 2nd PT Boat Flotilla carried out its mining mission ac-
cording to plan during the night of 30 Mar. For brief report see Tele-
gram 1330.

Special Item t

The Armed Forces High Command Operations Staff sent the fol-
lowing directive to the Naval High Command, the Commanding General,
Armed Forces, West, and the Commander in Chief, Air, concerning the
Naval Fortress Brigade: "The figures given by the Commanding General,
Armed Forces, West (see War Diary 29 Mar.) may serve as a basis for
organizing the brigade. The units of the Naval Brigade are to be as-
signed the moment they are set up." This directive caused Army Group D
under the Commanding General, Armed Forces, West to ask the Naval High
Command to keep the Commanding General, Armed Forces, West informed
about the progress made in organizing the Naval Brigade, as well as its
availability. The 7th Army is to report as soon as possible where the
first forces becoming available are to be assigned.

Coxisideriug that the organization has hardly gotten under
way, and moreover it is unclear where the minimum of 140
officers needed' will be taken from at all, the above
orders seem altogether premature. The Naval Staff can-
not help feeling that they also were occasioned by the
case of nerves' prevailing at the Armed Forces High Com-
mand. At any rate the Naval Staff Quartermaster Division
has been striving for days to make the necessary prepara-
tions to provide the personnel and equipment for the
• brigade.

III. North Sea, Norway, Arctic Ocean

1. North Sea :

The 1st Minesweeper Flotilla carried out mining operation
"Kaiser" in the Hoof den area.

Mine detonating vessel "150" ran onto a wreck off Hook of Holland, and

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31 Mar. 1942 CONFIDENTIAL

was towed into port after losing both propellors.

Escort and convoy service according tc plan.

2. Norway :

Snemy Situation ;

According to the radio intercept z ^rvlce, the ILLUSTRIOUS was
at sea northwest of northern Scotland r ^oon on 29 Mar. The radio in-
tercept service located a British vessel 120 miles southwest of Bergen
in the afternoon of 31 Mar. Air reconnaissance located 18 steamers
totalling 80,000 to 100,000 GRT, 1 cruiser, and 4 destroyers in Murmansk
and the harbors north of there at 0600. At 1640 seven steamers were
spotted in Polyarnoye.

Own Situation ;

The operation against the convoy was concluded at 1200. De-
stroyer Z "24" will probably need 6 days overhaul; destroyer Z "25" is
on 6 hour readiness.

The Admiral, Arctic Ocean reports, in addition to the earlier battle
report of the 8th Destroyer Flotilla, that in addition to the torpedo
hit also a gun hit was scored on the enemy cruiser of the City or FIJI
class. Also 2 of the enemy destroyers last engaged by destroyer Z "26"
were damaged by gunfire (see Telegram 0200).

For commendation by the Commanding Admiral, Group North of the forces
Involved in the operation against convoy PQ 13 see l/Skl 7596/42 Gkdos.
in War Diary, Part C, Vol. Ila.

Sae l/skl 7586/42 Gkdos. in War Diary, Part C, Vol. Ila for the Naval
Staff directive to the Commanding Admiral, Norway in accordance with
the order of the Chief, Naval Staff concerning the hermetical sealing
:f the Trondheim Fjord against the possible entry of enemy PT boats,
3 ibraarines, and other enemy naval weapons.

Group North agrees to the transfer of the Frohavet barrage as requested
by the Fleet. The Group feels that if the barrage is laid at a deoth
..f 14 or 15 meters the risk involved for our heavy ships Is very slight,
-he Group therefore requests the approval of the Naval Staff. (See
legram 0025. )

wording to a report from the Admiral, Arctic Coast, the objects dropped
b/ parachute at Petsamo en 28 Mar. (see War Diary 30 Mar.) were tor-
pedoes, 4 of which exploded at the coast of the inner fjord without
causing damage. The 5th torpedo was a dud.

During mlnesweeping in the Karm Sound, mine detonating vessel "138"
was slightly damaged by an exploding mine. Karm Sound will remain
closed for the time being.

During the night of 30 Mar., 15 enemy land-based bombers attacked the
coastal area between Aalesund and Smoela, as well as the Trondheim
area. 2 of the planes were shot down at Agdenes. In the opinion of the
Admiral, North Norwegian Coast, they had no definite target. According
to a brief report of the Ccmmanding Admiral, Battleships, the planes
repeatedly flew over the berths of the ships at low altitude. Parts of
a flare fell on one of the ships in the Faetten Fjord. 1 bomb was seen
to drop in the Lo Fjord north of the ship berths. The Commanding Ad-
miral, Battleships stresses once more the necessity of reinforcing the

- 312 -

31 Mar. 1942 CONFIDENTIAL

anti-aircraft defenses of Trondheim. (See Telegram 1210.)

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea

1. Enemy Situation i

According to an intelligence report all Norwegian ships in
Goeteborg have been ready to sail since 2200 on 29 Mar. They are to
proceed within Swedish territorial waters as far as the latitude of
Stroemstad. It is assumed that British ships are waiting to meet them
in the western Skagerrak.

2. Own Situation ;

8 patrol vessels are stationed in a patrol line between Skagen
and Stroemstad, and 2 in the gap in the minefield at Kristiansand
South. Air reconnaissance had to be cancelled because- of the weather.

The 6th transport group Hamburg - Oslo left with 4 steamers at 2000.
2 ships are carrying 835 men on leave from Hirtshals to Kristiansand
South.

The Swedish Navy is making available an icebreaker for 2 days for use
in the Oslo Fjord.

Group North orders that the GNEISENAU be transferred on 4 Apr. from
Kiel to Gdynia with the aid of icebreakers SCHLESIEN and CASTOR, and
from there to Swinemuende by icebreaker STETTIN. The Commander, Mine-
sweepers, Baltic Sea is to be in charge of the operation. After the
transfer of the GNEISENAU, the CASTOR Is to proceed t6 LIbau, to be at
the disposal of the Admiral , Baltic Countries for the Riga operation.
(See Telegram 1958.)

The Operations Staff, Armed Forces High Command orders that German
Summer Time remain effective for German units in northern Finland. Ger-
man Armed Forces offices which are subject to Finnish time (e.g.,
Liaison Staff North, 163rd infantry Division) are to report according
to German time when communicating with German offices. (See Telegram
2130.)

V. Submarine Warfare

1. Enemy Situation ;

Radio Intelligence intercepted messages about submarines
sighted off the U.S. east coast, among them one from the British steamer
SARPED0N (11,321 GRT).

A drifting mine was reported 40 miles north of Cape Hatteras. British
destroyer R0XB0R0UGH was ordered on 29 Mar. to go to the aid of British
steamer HERTFORD (11,785 GRT), which was torpedoed 225 miles south of
Halifax. Tankers PENNSYLVANIA SUN, DELAWARE SUN, and MERCURY SUN were
ordered to proceed to the nearest harbor before noon of 31 Mar.

In the West Indies a submarine warning was sounded by the British Ad-
miralty for the Florida Strait. A U.S. tanker, the T.C.McCOBB (7,452

- 313 -

31 Mar. 19^2 CORF : PENT IAL

GRT), which was fired upon "by an Italian submarine, sent an SOS signal
from 400 miles northeast of Cape Orange.

In the Mediterranean a report of a British plane about a supposed depth
charge hit scored on a submarine 22 miles northeast of Algiers was in-
tercepted. No German submarine can be involved.

2. Own Situation :

Submarine operations against convoy PQ 13 have been concluded.
3 submarines were assigned stations outside of Kola Bay. for the purpose
of intercepting possible stragglers of the convoy which has made port In
the meantime.

For supplementary report on the situation see War Diary, Part B, Vol. IV.

VI. Aerial Warfare

1. British Isles and Vicinity :

Fighter bombers attacked Paignton harbor at 1445. 2 SC 250
hits were scored on a 3,000 GRT steamer.

During the night of 31 Mar., only 2 enemy planes flew into the Rhine
valley. Bombs were dropped over Holland.

2. Mediterranean Theater :

Considerable forces attacked Malta airfields during the day
and in the evening. 2 enemy fighter planes were shot down. The Air
Commander, Africa attacked the desert railroad and the Gambut airfield,

3. Eastern Front :

On 30 Mar. a 6,000 GRT steamer was seriously damaged hy a
bomb attack in the Arctic Ocean west of Kildin Island. Harbor instal-
lations of Murmansk were attacked at 1700, and hits were observed on
buildings and tracks.

VII. Warfare in the Mediterranean

1. Enemy Situation :

No special reports have come in from the western and central
Mediterranean.

At 0855 German air reconnaissance located 8 merchant vessels and 3 de-
stroyers on westerly course off Alexandria.

The British Admiralty announced the loss of the cruiser NAIAD. The
cruiser was last seen in the eastern Mediterranean. Possibly this is
a success of submarine U "565", which heard sinking noises after hitting
a cruiser twice some time ago.

2. Situation Italy :

Enemy planes attacked Benghazi during the night of 30 Mar.

- 31* -

31 Mar. 1942 CONFIDENTIAL

without causing important damage.

3. Transport of Supplies to North Africa ;

The 6th transport group has not as yet gotten under way. An
enemy submarine sank steamer BOSFORO (3,600 GRT) at 0125 24 miles west
of Navarino on her return voyage to Benghazi.

Tanker SATURNO and steamer AJRGENTEA arrived in Tripoli.

Coastal traffic proceeded without incidents.

4. Area Naval Group South ;
Aegean Sea ;

E nemy Situation ;

According to a report from the Italian Navy, 3 cruisers of the
NIGERIA class arrived in Larnaca on 23 Mar. British vessels from
Karavastisi are mining territorial waters in the Aegean Sea at night,
especially off Rodi. 1 minelayer is operating in the Polls zone in the
Krisoku Bay. On 22 Mar. 2 steamers unloaded heavy war materiel in
Limasol. (See Telegram 1945.)

This information is important for the planned submarine
operations in the eastern Mediterranean.

No other reports of importance are available from the area of Naval
Group South.

Turkey ;

According to the Naval Attache at Istanbul, the 2nd of the
destroyers built by Britain, the DEMIRHISSAR, arrived at Alexandretta
on 30 Mar. and was handed over to Turkey.

VIII. Situation aast Asia
Nothing to report.

IX. Army Situation

1. Russian Front ;

Southern Army Group ;

Enemy attacks in the Slavyansk area continued without success.
On the southern front of the 6th Army the enemy attacked between
Balakleya and the outermost part of the southern wing. He succeeded
only in advancing to the northern bank of the Donyets west of Balakleya.
West of Kharkov the enemy was pushed eastward back across the Donyets.

Central Army Group ;

A German advance east of Bolkhov was successful. The enemy

- 315 -

31 Mar. 19^2 CONFIDENTIAL

withdrew northeast across the Susha. Lively fighting in the area of
Sukhinichi. North of the Gzhatsk - Mozhaisk highway an enemy surprise
penetration was successful. The position changed hands several times.
At the penetration point northwest of Rzhev only weak enemy forces at-
tacked today. At the western front of the 4th Army, 35 enemy bunkers
were taken in a German advance at Sychevka. The enemy blocked the
supply route in front of Byeloi.

Northern Army Group ;

The Von Seydlitz Group broadened Its bridgehead across the
Redvya River. The enemy withdrew southward on the southern wing of the
Staraya Russa position. Newly brought up German troops have been
thrown into the breach at Maluksa.

2. Finnish and Norwegian Front ;

Enemy forces in battalion strength were encircled on the
southeastern front at Rugozero, but they were able to break out later
toward the east, with the help of reinforcements from the outside.

3. North Africa ;
Nothing to report.

#*******«*«*#*f *#♦♦****♦*

- 316 -

CONFIDENTIAL

GLOSSARY

Aida

Code name for the planned capture of Egypt and the Suez Canal.

Ban to s A

Code name for a mine field laid northeast of Rybaehi Peninsula.

Eisenbahn

Code name for transfer of the HIPPER fro* Germany to TrondheiM in
March 1942.

Etappe

Secret German naval organization for providing German naval units
vith information and supplies from foreign bases. Etappe Japan
was of great importance for German blockade -running activities.

Fab XI

A combination magnetic and acoustic firing device for mines.

Felix

Cover name for a proposed operation involving the conquest of
Gibraltar and the establishment of German naval bases on the
Canary Islands and at selected points along the Spanish coast.

Fu ssweg

Route for German bloekade-runners and prizes. The following points
were along this route:

Kcenigsberg - 52° 27 ? S, 93° 4l» W

Dinkelsbuehl - ?8° 30' N, 150° 00 » W

Chemnitz - 42° 00 » N, 180° 00 » W

Oppeln - 34° 00' H, 139° 50 • V

Isabella

Cover name for defense measures to be taken in the event of an
Allied invasion of Spain.

ayiug mission or cue German supply ship and blockade-runner
D00GERBANK in the Capetown area.

Kuesel Minefield I

A minefield blocking the western navigation channel of the en-
trance to the White Sea. The mined area was rectangular and its
boundaries were approximately the following: 67° 30' N; 67° 25* N;
410 J2» e; 41© 09* E.

Maastricht

German reference and rendezvous point loeated at 39° S, 44o w.

Metalle area

Area between 220 and 30° S, 70© and 850 E. The following reference
points were in this area:

Eisen - 220 S, 850 E

Messing - 23° S, 80© E

Kupfer - 25° S, 75° E

Mangan - 26© S, 800 E

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CONFIDENTIAL

Nickel - 27° S, 85° E
Wolfram - 28.5° S, 790 E

lalysls "Foreign Navies" (Nachrichtenauswertung "Fremde Marinen")
dally analysis of foreign newspaper reports concerning foreign

News An al:
T

naval news, compiled by the Naval Staff Intelligence Division
(3/Skl).

Ostseekrabbe

German reference point located at 420 05 • N, 380 40' W.

Pfanne

""German reference point located at 4lo 30' N, 360 20' W.

Political Review (Politische Uebersicht)

A daily review of political developments abroad published by the
Naval Staff Intelligence Division (3/Skl).

P£

^P

Designation of convoys proceeding eastward from the United Kingdom
to northern Russia.

Designation of convoys returning to the United Kingdom from
northern Russia.

QQQ sign al

Distress signal sent by ship when sighting or under attack by
armed raider. QQQ was also used when suspicious merchant vessels
were sighted.

Rack mine, type A *

The German SMA mine. A moored influence mine laid by a specially
constructed mlnelaying submarine. Its charge weighed approximately
350 kilograms. This mine was designed for waters of 50 m. to 300 m.
depth.

Rossauge

Must refer to reference point "Rosskaefer" mentioned in the opera-
tions order of the RIO GRANDE. "Rossauge" is probably a confusion
between "Rosskaefer" and "Rotauge". Point "Rosskaefer" was lo-
cated at 430 48« N, 7° 52 ' W.

Rotauge

German reference point at 47° 20' N, 200 00' W.

Rotfeder

German reference point at 38° 30 ' N, 37° 30' W.

SMA mine

Rack mine, type A. A moored influence mine laid by a specially
constructed mlnelaying submarine. Its charge weighed 3^0 kilo-
grams. This mine was designed for waters of 50 m. to 300 a. depth.

Todt Organization (O.T.)

A construction organization (named for the founder), which built
the German superhighways, the Westwall, and the Atlantic fortifi-
cations. It employed domestic and foreign labor on military pro-
jects both in Germany and in the occupied countries.

Type VII C

A 500 ton sea- going submarine. It was 67. 1 meters (221.43 ft.)

- 318 -

COHFIDENTIAL

in length, had diesel-electrie propulsion, and was armed with 4 bow
tubes and one stern tube.

Type X B

A 1600 ton minelaying submarine. It was 89.8 m. (296.54 ft.) In
length and had normal diesel-electrie propulsion. It vas equipped
with JO nine shafts and two stern torpedo tubes.

Route "Oe lb"

Route taken by German vessels to Japan, via Indian Ocean and Sunda
Strait. The points touched on this route are given below, with
their usual designations. On occasion the designations for these
points were changed. •

•

1. "Duesseldorf" - 24o 00' S, 99° 00' E

2. "Dahlem" - Sunda Strait

3. "Danzig" - 09° 15' N, 110© 30' E

4. "Darmstadt" - 20O 50 ' N, 120© 00' E

5. "Duisburg" - 260 00 f H, 128© 40* E

6. "Doeberitz" - 34b oo' N, 139° 50' E

By an order dated April 13, 1942 the points on route "Gelb" were
renamed for blockade-runners as follows:

1.

Rose

2.

Lllie

3.

Tulpe

4.

Reseda

5.

Harzisse

6.

Loewenzahn

•

Route "Lila"

A German shipping route to the west of route "Rosa", branching off
the latter near Ostend and rejoining it near Calais.

Route "Rollbahn"

This route touehed the following points:

Saale - 24° 00* S, 99° 00 » E

Altmuehl - Sunda Strait

he gen - 09° 15' H, -i-^

Hunte - 20° 50' II, 120°

Persante - 26° 00 « H, 128°

Neclcar - 34° 00* H, 139°

Route "Rosa"

German shipping route along the western coast of France.

Route Uhunest

A German shipping route out of St. Hazaire. It ran from point H I
(47° 07* H, 20 3o * W) to point 34 U (46© 50 • II, 2© 37* w) thenee in
a 2110 direction via point Uhu (46© 05 ' H, 3° l8» W) to 45© 38' N,
3© 41 • V.

SC Pombs

Thin- shell high explosive bombs.

JO

E

00 »

E

40'

E

50'

E

Sportpa
Co

last

ode name for the transfer of the SCHEER, and PRIWZ EUGEN, to
Norway 21-23 Feb. Originally the GNEISENAU and SCHARNE0RST were
to participate in this operation.

- 319 -

COHPIDSFriAL

SS priority

S ( Senders tufe), priority; SS, preferential priority; SSD,
emergency.

SSS signal

" Distress signal sent vhen sitting or under attack by a submarine;
eould also indicate being damaged by a Mine.

Suedsee

Cover name for a planned voyage of German steamers to and from
Japan along the northern coast of Russia and Siberia. The German
auxiliary cruiser KOMBT (ship rt ^5") sailed this route in 19*0 with
Russian cooperation (operation "Gruen").

- 320 -

•

#

Q-